KPN Sticks It to Hutchison

Thanks to Hutch's insistence on an 'invalid' funding call, KPN Mobile wants to force it to buy back its shares in 3 at 140% of the fair price

June 11, 2003

1 Min Read

THE HAGUE -- KPN Mobile N.V. announced today that it considers Hutchison Whampoa Limited to be in material breach of the shareholders agreement (due to its continued support of an invalid funding call, issued by Hutchison 3G UK Holdings Limited ("Hutchison 3G") on March 11, 2003). As a result of this material breach, on May 27, 2003, KPN Mobile served a notice requiring Hutchison Whampoa Limited to buy its shareholding in Hutchison 3G at 140% of the fair price (as it is entitled to do under the shareholders agreement).

On June 2, 2003, Hutchison Whampoa Limited issued a claim form in the English High Court seeking a declaration that the March 11 funding call was a valid funding call under the shareholders agreement. Hutchison Whampoa Limited also seeks unspecified damages. KPN Mobile will strenuously resist these claims.

On June 2, 2003, Hutchison Whampoa Limited also served a notice seeking the transfer of (a part of) KPN Mobile's shareholding in Hutchison 3G in return for a cession of a GBP 150 million loan granted by Hutchison Whampoa Limited to Hutchison 3G. KPN Mobile was originally requested to grant such loan to Hutchison 3G under the March 11 funding request.

KPN Mobile

Hutchison 3G UK Ltd.

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