Jump to full article: Times Of London (uk), 2007-01-14
Intro: GALLAHER faces fresh accusations of colluding with Customs to mislead parliament about alleged complicity in tobacco smuggling, according to legal papers that will be lodged in court this week.
The claim is one of three cases dogging the British firm and threatens to derail the £7.5 billion takeover bid by Japan Tobacco International, which Gallaher’s board has recommended to shareholders.
The legal action, to be filed in Cyprus, is part of a dispute between Gallaher and its former distributor in the Middle East, Tlais Enterprises Ltd (TEL), based in Limassol.
However, TEL, run by Lebanese businessman Abu Hameed Tlais, is now bringing Revenue & Customs into the conflict, claiming £250m in damages for breach of contract.
The inclusion of a government agency in the legal dispute could delay the takeover, given that behind the latest writ is an allegation that financial mismanagement by Customs was covered up.
At issue is an agreement between the three parties, which senior Customs officials authorised in December 2002 and hailed as a breakthrough in their fight to control smuggling into Britain of Gallaher’s key brands — Sovereign and Dorchester. The so-called “tripartite agreement” gave Customs the ability to monitor the activities of a major distributor for the first time.
Jump to full article » |