By Phil Boeyen, ShareChat Business News Editor
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Tuesday 7th May 2002 |
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VTL announced its proposed purchase of Soche in August last year but claims it exercised its right to withdraw the offer when the Australian economy weakened dramatically following the terrorist attacks in the US on September 11.
However Melbourne-based Soche alleged VTL had not been entitled to pull out of the sale and was seeking more than A$2 million in damages.
VTL director, Mervyn Doolan, says the company quantified the costs involved in defending the action and made a commercial decision.
"We will recognise the costs in the year ended 31 March 2002 and we do not expect them to have a significant impact on our result."
Mr Doolan says that under the agreement neither company has admitted liability and the terms of settlement remain confidential between the parties.
"We retain a strong interest in expanding our presence in the Australian market which we are achieving via our proprietary technologies and the unique licensing programmes and revenue streams they make possible."
At the time of withdrawing the offer VTL chairman, Dr Richard Janes, said the company was entitled pull out of the deal under a condition that stated it could cancel "in the face of adverse and unprecedented market conditions."
It's understood that Soche was disputing the timing of the withdrawal.
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