Shares in the country's number two mobile phone operator Technology Resources Industries Bhd (TRI) dipped early Thursday after news the company paid RM38.7 million to three former directors prior to their resignations, dealers said.

The company is demanding repayment of the amount, which includes a RM23.4 million payment to former chairman and chief executive Tajudin Ramli ( photo ).

At the morning close on the Kuala Lumpur stock exchange, TRI was down RM0.02 ringgit at RM2.43 on volume of 401,000 shares.

"This is a negative development for TRI. As the company said, (this) will have an impact on its earnings this year. It will slash my net profit forecast of RM311 million it by 12 percent," a telecommunications analyst with a local brokerage said.