No suit by Econet Wireless seeking $3.1 bn damages, says Bharti Airtel

NEW DELHI: Country's largest private telecom operator Bharti Airtel said no suit has been filed against it by South Africa-based Econet Wireless Ltd (EWL) to seek $3.1 billion as damages.

"There is no suit filed by Econet Wireless Ltd in any court claiming $3.1 billion or any such or other sum," a Bharti Airtel spokesperson said.

Comments from EWL could not be obtained immediately. The Bharti spokesperson, however, admitted that EWL has, in an ongoing legal proceeding, stated that there might be claim for damages and equitable compensation in excess of $3 billion.

"EWL has in a reply in one proceeding stated that as presently advised by its financial consultants, the claim for damages and equitable compensation might be in excess of $3 billion bearing in mind that Celtel paid over $1 billion to acquire ANL and then sold ANL to Bharti Airtel for $4.5 billion," the spokesperson said.

EWL knows these are completely "spurious and misleading statements and bear no reference to reality", the spokesperson added. Bharti Airtel was reacting to reports that EWL has filed a suit seeking $3.1 billion in damages following favourable court order in a legal battle over ownership of Bharti's Nigerian operations.

The company's stocks took a beating in market today and closed 2.59 per cent down at Rs 338.35 per on the BSE.

EWL is the co-founder and 5 per cent share holder in Celtel Nigeria (now Airtel Nigeria). It claims that its holding was cancelled when Zain took control of Celtel Nigeria in 2005.

Bharti Airtel inherited the legal case as part of its over $10 billion acquisition of Zain's Africa operations in 2010.