Neocorp Inc., a holder of telecom assets in CIS countries, filed suit against Swedish Tele2 last week in the arbitration court of the Stockholm Chamber of Commerce. Neocorp is demanding Tele2 to satisfy contract obligations for the acquisition of Orvell, a company valued at $38 million, which owns 100% of Construction and Installation Mobile Administration (SMUPS), according to a Neocorp representative quoted by Russian business daily Vedomosti.
The contract was concluded in spring 2007 prior to auctions for GSM-frequencies when Tele2 won licenses in 17 regions, in addition to the 20 regions where it already had representation. According to the Neocorp spokesman, Tele2 requested assistance in network planning and site preparation. According to the rules of the frequency tender, operators committing to a shorter term before the launch of their network increased their chances of winning the frequencies. Tele2 enlisted the support of Neocorp to meet the early launch requirements.
Tele2 was to buy Orvell no later than March 31, 2008. SMUPS fulfilled its obligations, says Neocorp, but Tele2 refused to proceed with the promised acquisition.
EWDN’s request for comments was left unanswered by Tele2’s legal department in Stockholm.
