Tiscali 2001 Annual Report Download - page 50
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42
pan-European level, and to exploit to the full all the opportunities offered by the growth of
the on-line advertising and e-commerce markets.
The B2B sector is expected to continue to generate a significant share of revenues,
following the rationalisation of resources, creation of dedicated units for this type of
activity, and the development of network infrastructure and specific corporate departments.
OTHER INFORMATION
Legal Issues
Tiscali is involved in several routine legal proceedings, claims and litigation. The Group's
management does not expect that any negative outcome of pending cases would have
significant adverse effects on the consolidated financial position, nor on future results. The
main cases pending are the following:
On March 8, 2002, Trayboard Holdings SA, which in May 2000 sold Tiscali its stake of
around 27% in Quinary SpA, filed for arbitration proceedings against Tiscali in Italy to
obtain payment of the price of a put option on 70% of Quinary's capital guaranteed under
the contract. The value of the claim is nearly EUR 7mn, against a residual shareholding of
Quinary's share capital.
On March 30, 2001 Tiscali initiated an arbitration procedure in Switzerland against Nikolai
Manek, one of the major shareholders who in April 2000 sold the German Company
Nikoma GmbH to Tiscali. Tiscali is claiming damages of over EUR 56mn, alleging that the
purchase agreement contained incorrect information as to the number of active
subscribers, which was overestimated. Tiscali has frozen over 800,000 Tiscali shares held
as a guarantee, which were part of Mr. Manek's payment for the transaction. Mr Manek
has rejected Tiscali's allegations and is claiming damages for illegal custody of the shares.
In December 2001, Dino Trovato, who in January 2000 sold Tiscali SpA 80% of the Swiss
Company DataComm AG, filed for arbitration proceedings against Tiscali in Switzerland, in
order to obtain payment of the put option price guaranteed in the acquisition agreement.
The amount under litigation is almost EUR 10mn, against a residual shareholding of 20%
of DataComm's share capital.
In February 2002, the US-based Viatel Global Communications Ltd, which is currently in
temporary "Chapter 11" receivership, sued Nacamar Data Communications GmbH, a
German subsidiary of the World Online Group (now renamed Tiscali Business GmbH).
Viatel is claiming damages of about USD 13mn, alleging Nacamar's breach of its
obligations under a data transport capacity assignment agreement.
In July 2001, the Dutch foundation Vereniging Van Effectenbezitters (VEB) representing a
Group of shareholders, sued World Online International NV (currently 99.5% controlled by