Econet Wireless Seeks $3.1 billion in Damages From Airtel

Econet Wireless is seeking at least $3.1
billion in damages from Bharti Airtel in a
dispute over ownership of its subsidiary
Airtel Nigeria, according to a suit filed on
Wednesday.
The move follows a Nigerian court ruling on January 30 that Bharti Airtel's ownership of its subsidiary Airtel Nigeria is "null and void" because co-founder and five percent shareholder Econet was not consulted on the transfer.
South Africa-based Econet Wireless,
according to Reuters is disputing the Indian company's ownership of one of its top Africa operations.
Bharti said last month that its stake in its
Nigerian unit was "completely safe" and that the world's fifth-biggest mobile phone carrier by subscribers had appealed against the verdict.
"The claim for damages and equitable
compensation against the Applicant and
some of the Respondents might be in
excess of $3 Billion," the document filed to
the court said.
"The above estimated damages might also
be in addition to a claim for $100 million
received by the Applicant as fees for the
management of VNL (Vee Networks Limited, a former name of Airtel) for a period of six years which sum should have accrued."
Bharti Airtel inherited the legal case as part
of a $9 billion acquisition of Zain's Africa
operations in 2010, including 65 percent of Zain Nigeria.
The basis of Econet's claim is that its five
percent stake was unfairly cancelled when
Zain took control, so any decision made
since then without it, including the transfer to Bharti, is void.
The Nigerian court upheld that claim.
Nigeria contributes about 9.5 percent to
Bharti's consolidated operational profits, the company says.
Culled from : http://www.thenationonlineng.net/2011/
index.php/news-update/37553-econet-
seeks-3-1b-damages-from-bharti-airtel.html