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Appeals court upholds rejection of Magyar Telekom shareholder's claim against 2009 AGM

The Metropolitan Court of Appeal has upheld the first instance judgment rejecting a Magyar Telekom minority shareholder plaintiffs' claim regarding the resolutions passed by the company's extraordinary general meeting held on June 29, 2009, Magyar Telekom reported.

On July 29, 2009, two Hungarian minority shareholders filed a lawsuit against Magyar Telekom requesting the Court to render ineffective the resolutions passed by the EGM held on June 29, 2009. The Metropolitan Court announced on June 16, 2010 that it had dismissed the claim in a first-instance judgment.

The minority shareholder plaintiffs submitted an appeal against the first instance judgment requesting that it be reversed. The Metropolitan Court of Appeal, in its final judgment announced on January 18, 2011, upheld the first instance judgment as requested by Magyar Telekom. Accordingly, the judgment rejecting the claim became binding. The Metropolitan Court's rejection of the appeal is non-appealable.

The June 2009 Magyar Telekom shareholders' meeting approved by a 64.57% majority of those present a proposal to merge Magyar Telekom's cable unit T-Kábel and the latter's wholly-owned unit Dél-Vonal with the parent company. The small shareholders requested that the court annul the resolutions passed by the EGM on June 29, 2009 and suspend the EGM decisions regarding settlement with shareholders who did not wish to remain shareholders following the merger as well as the resulting opening draft balance sheet and draft merger inventory.

Arguing for the merger, Magyar Telekom said it would allow the company to deliver triple-play services -- internet, cable TV and telephone services -- more efficiently, and is expected to save the company an annual HUF 1 billion in costs. (MTI – Econews)