Subject: [NEXTEL-1] Trunking operator countersues BellSouth for US$20mn

From: Marcelrf <[email-masked]>
Date: Thu, 01 Apr 2004 00:35:50 -0500

Trunking operator countersues BellSouth for US$20mn
March 29, 2004 5:44pm

Panamanian trunking operator C Comunica has answered a US$20mn lawsuit
filed by BellSouth Panama with its own US$20mn lawsuit against the
operator, local daily Capital Financiero reported.

C Comunica argues that BellSouth abused its market position by a filing
pre-emptive lawsuit on the supposition that C Comunica was preparing to
launch digital trunking service using iDEN technology of US-based
Motorola (NYSE: MOT). The newcomer's claim before utilities regulator
ERSP accuses BellSouth of anti-competitive practices and called for the
operator's license to be revoked.

C Comunica also sought an injunction against BellSouth's US$20mn
lawsuit, because it directly attacked business practices that had not
yet taken place, as well as preventing C Comunica from providing
services that it was legally authorized to provide.
According to the paper the lawsuit could be doubly problematic for
holding company Multi Holding Corporation, which has a 56% stake in
BellSouth Panama, because it could affect MHC's chances of receiving a
good offer for its stake from Spain's Telefónica Móviles (NYSE: TEM).

As part of its well-publicized plan to buy out BellSouth's Latin
American properties, "Telefónica Móviles claims that it will offer
minority shareholders the same [pro-rata] price it offered BellSouth,"
but the value of each of BellSouth's divisions is relative and
determining the value for minority shareholders will require protracted
negotiations, Eric Meltzer of Curtis Securities told BNamericas.

Given the timing of C Comunica's lawsuits, BellSouth suspects the
ultimate aim is to discredit the company, the paper quoted BellSouth
Panama legal advisor Roberto Meana as saying.

Meltzer could not say why it would be in C Comunica's interest to make
BellSouth less attractive to TEM, saying only that, "There has been a
lot of ill will in the market [between MHC and C Comunica], a lot of
jostling and this is probably just part of the jostling."

http://www.hoovers.com/free/news/detail.xhtml?ArticleID=NR200403293200.1_78fd00086e276009

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