Boston, MA 04/24/2014 (wallstreetpr) – Vodafone Group Plc (ADR) (NASDAQ:VOD) has been taken to court by its partner for cancelling a franchise agreement without legal notice. It is estimated that the company will end-up paying as much as $1.89 billion in damages. MTS sued the Greek unit for 1.37 billion Euros.
Papistas Holding SA suing for moral damages
The parent company of MTS, Papistas Holding SA, sued Vodafone for the moral damages caused due to cancellation of a franchise agreement. Papistas Holding was found by Athanasios Papistas and Loukia Florou.
The changed strategy in Greece
MTS has reported that the Vodafone Group Plc (ADR) (NASDAQ:VOD) has changed the strategy in Greece after 2008 and damaged the company’s liquidity. The sudden change in strategy changed the maintenance service and loan contracts. A suit of 255.5 million Euros was charged to Vodafone in December 2013, for a similar suit filed.
Vodafone’s Defend
Vodafone has reported that the claims are without merit and the losses that are reported by MTS are not likely to be true. The fanciful losses will be defended by Vodafone vigorously. Vodafone is well set to defend the suit that was filed at the Greek court of First instance which is in Athens.
With all these rivals and suits filed, Vodafone is also well set to defend its position against MTS. The company says that it will not allow fictitious reasons like those filed by MTS to drag down the company’s position. With all these on one side, Vodafone is also under plans for the future.
Plans for Future
Vodafone Group Plc (ADR) (NASDAQ:VOD) was cheered up by the $130 million, which was a result of the sale of interest in Verizon Wireless. The company is looking out to improve its mobile data business. Plans for new outlets in London have also been planned by the company.
Looked Out as a Target
European market is welcoming mobile internet business, and telecom operators like AT&T Inc. (NYSE:T) are looking at Vodafone Group Plc (ADR) (NASDAQ:VOD) as a target.
