Tiscali 2014 Annual Report Download - page 115

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Annual financial report as at 31 December 2014
Date
File Name
Status
Page
-
Annual Report as at 31
December 2014
115
(EUR 000)
31 December 2013
Book value
Fair value
Secured bank loans
131,791
131,180
Unsecured bank loans
11,940
11,940
Payables for financial leases
57,950
50,749
The fair value of the financial instruments as indicated above was determined using the discounted
cash flow method and taking as reference the market interest rates, in addition to contractual spreads
(where applicable).
Stock options
There are no stock option or share incentive plans outstanding.
Disputes, contingent liabilities and commitments
During the normal course of its business, the Tiscali Group is involved in a number of legal and
arbitration proceedings, as well as being subject to tax assessments.
A summary of the main proceedings to which the Group is a party, is presented below.
Civil and administrative proceedings
Dispute open with TeleTu
In June 2011, Tiscali Italia summonsed TeleTu S.p.A. before the Milan Court, requesting
compensation of damages for EUR 10 million due to illegal conduct implemented by the defendant
during the migration of users in the period January 2009-April 2011. The defendant made a
counterclaim for alleged similar conduct adopted by Tiscali Italia, in turn requesting damage
compensation for more than EUR 9 million. The outcome of the proceedings is not predictable.
Telecom dispute
In December 2014, Tiscali Italia summonsed Telecom Italia before the Milan Court, so as to obtain
compensation for the damages suffered due to the excluding conduct adopted by Telecom to the
damage of competitors which formed the subject matter of the ruling of the Anti-trust Authority No.
24339 dated May 2013 issued on conclusion of proceedings A-428 dated June 2010. The AGCM
believed that Telecom Italia adopted abusive conduct in the three-year period 2009-2011, in detail: (i)
the opposition of a significantly high number of KO (or rather negative responses) to the requests for
activation of access services carried out by other operators, thereby establishing discriminatory
treatment with respect to the same requests by the internal Telecom Italia S.p.A. divisions; (ii) the
adoption of conduct for the unlawful squeezing of the profit margins of the competitors with reference
to certain services dedicated to business customers. By virtue of the afore-mentioned ruling of the
AGCM, Tiscali took steps to quantify, via a specific expert opinion, the damage suffered as a
consequence of the conduct adopted by Telecom Italia S.p.A.; a value of over EUR 285 million
emerged. To-date, it is not possible to make any prediction with regard to the outcome of the
proceedings.