Bermuda Company After Boq For $88m
Sydney Morning Herald
Monday July 1, 2002
Bermuda ``mezzanine market" technology listing Metyor has provided another $200,000 in the form of a bank guarantee for costs in its $87.7 million legal action against Bank of Queensland over an automatic teller machine joint venture.
The regional bank has dismissed the claims of Metyor, a company chaired by Michael Milne, as ``ambit".
Mr Milne headed ASX-listed International Media Management from 1991 to 1998. IMM established and later sold the home-shopping network TVSN.
BoQ's managing director David Liddy said on Friday the bank was ``totally confident of success" but fully expected the matter to go to trial.
Metyor started proceedings against the bank in April last year alleging breach of contract and failure to act in good faith in relation to the joint venture company, which had planned a network of Web-enabled ATMs for the bank.
Metyor has assessed its losses at $87.7 million, based on the initial installation of 300 ATMs and an estimate of the number of transactions processed by them, and claims the losses of the JV partners rise to $386.5 million if the projected 1000 ATMs had been installed.
Metyor said on Friday that commercial resolution was unlikely ``given that BoQ has not been willing to engage in any form of mediation or settlement discussions since the litigation was commenced".
The first day of the trial is set down for July 29 in the Supreme Court of Queensland and Metyor has already provided a total of $360,000 in bank guarantees as security for BoQ's costs, not including the latest $200,000.
BoQ is seeking a further $144,000 in security to cover its pre-trial costs.
The action comes at a time of change for the bank, which is looking for acquisitions to boost its profile in the Australian banking market.
BoQ launched its Net banking and updated logo last week. BoQ shares hit a record of $7.86 on Friday, before closing at $7.52.
© 2002 Sydney Morning Herald