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Two small shareholders sue Magyar Telekom over June merger of company unit

Hungary's Magyar Telekom said Friday that two Hungarian minority shareholders have filed a lawsuit against the company with the aim of invalidating June EGM decisions regarding the merger of a unit. 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.

Magyar Telekom said it disagreed with the claim and will vigorously defend against it. The June 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.

Magyar Telekom held a 16.4% direct stake in T-Kábel and an indirect 83.6% stake through its wholly-owned unit Investel.

Arguing for the merger, Magyar Telekom CEO Christopher Mattheisen 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)