Bank of New York Mellon Corp has reduced its holding in Chorus after the telecommunications network company said it would be hurt by the regulator's decision to lower the price it can charge retailers for its copper-based broadband service.
BNY Mellon, which is the world's largest custody bank with $US27.4 trillion ($A30.25 trillion/$NZ33.3 trillion) in assets under custody, reduced its holding in Chorus to 6.3 per cent from 7.45 per cent on Wednesday, according to a substantial security holder notice posted on the NZX on Friday.
Chorus shares have plumbed new lows after Telecommunications Commissioner Stephen Gale ruled the wholesale price Chorus can charge for its copper-based broadband services should be cut by 23 per cent.
Chorus has said the pricing cut would force an overhaul of its capital structure as its earnings may be slashed by $US142 million ($A156.76 million) a year, meaning it may not pay its forecast dividends in 2014.
Shares in Chorus touched a record low $NZ1.36 on Thursday and have lost more than half their value this year.
Chorus is in talks with Crown Fibre Holdings, which oversees the government contract with the company to build a national fibre network, to see if it can find contractual redress to mitigate the impact of regulated price cut.
