Czech Telefonica O2's buy of Deltax challenged in court by rival |
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Fri, 16 Nov 2007 11:47
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PRAGUE (Thomson Financial) - Telefonica O2 Czech Republic's acquisition of software firm Deltax Systems has been challenged in court by rival T-Mobile Czech Republic over the disputed payment of 1.8 bln crowns in connection fees, online news server Euro reported.The dispute stems from 2001, when the former state-owned Czech Telecom (now Telefonica O2 CR) reportedly failed to pay connection fees of 898 mln crowns to T-Mobile CR, incurring a debt which has now climbed to 1.8 bln crowns.T-Mobile CR insists Telefonica O2 CR pay its debts before using company funds for acquisitions, Euro wrote, adding that an order freezing assets bans Telefonica O2 CR from disposing of property above its usual business activities.'We are requesting the court to establish that the contract transferring (shares in Deltax to Telefonica O2 CR) is invalid,' T-Mobile CR spokeswoman told the news server, adding the company filed a complaint against Telefonica O2 CR and Deltax shareholders that transferred shares to Telefonica O2 CR.Telefonica doesn't consider the purchase of Deltax illegal, Euro wrote.'(The purchase) is just a matter of growing assets,' Euro cited Telefonica's spokesman Vlastimil Srsen as saying and adding that the company has created reserves for the disputed amount.Telefoncia O2 CR, a unit of Spanish telecom giant Telefonica SA, bought Deltax in September.jason.hovet@thomson.com +420 222 191 108jm1/sljCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Czech Telefonica to focus on domestic growth, doesn't rule out acquisitions 