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'MTS, Euroset approach claims settlement'(DMeurope Via Acquire Media NewsEdge) The Russian mobile operator MTS is close to a settlement with the retailer Euroset on the withdrawal of MTS claims against Euroset worth USD 20 million. The two companies have been in negotiations since April. Euroset hopes to conclude a settlement agreement with MTS by 28 November, Euroset CEO Alexander Malis told the newspaper Vedemosti. The director of public relations at MTS, Elena Kochanowskaya confirmed the information, but declined further comment. At the end of March MTS refused to renegotiate with Euroset the expired contract under the same terms, and thus canceled the agreement on the sale of Sim cards through the retailer's network. The reason was that Euroset operated for a competitor, after in October 2008 Vimpelcom acquired 49.9 percent of Euroset shares. After terminating the contract with Euroset, MTS began to strengthen its own retail network, which now has 3,300 sales points versus Euroset's 3,700 sales points in Russia. The companies also exchanged lawsuits. MTS demanded that Euroset return MTS the fees accepted from customers in the amount of RUB 358.2 million as well as the debt for supply of iPhones in the amount of RUB 285.8 million. The decision on this claim has already entered into force. Euroset has filed two lawsuits against MTS concerning the payment of commissions and bonuses on sales contracts totaling RUB 499.1 million. In addition, the companies filed against each other intangible claims, such as on the illegality of the ban to accept payments for MTS. According to Malis, the settlement agreement involves a review of all claims. In addition, Euroset will pay MTS the difference of mutual claims, but the final amount is not set yet. The presumed amount is RUB 20 million, however it can also be lower, at RUB 15 million. ((Comments on this story may be sent to [email protected])) (c) 2009 M2 COMMUNICATIONS |