Telenor East Holding II AS v Altimo Holdings & Investments Ltd & Ors [2011] EWHC 735 (Comm) (01 March 2011)

Telenor East Holding II AS v Altimo Holdings & Investments Ltd & Ors [2011] EWHC 735 (Comm) (01 March 2011)

The undertakings offered by the respondents, with minor modification to allow Telenor to challenge the lifting of stop notices, are sufficient to protect Telenor's position pending arbitration. The escrow proposal is not necessary and would cause disproportionate prejudice to VimpelCom and its shareholders. The balance of convenience favours accepting the undertakings rather than granting the injunction or ordering escrow.

Citation
[2011] EWHC 735 (Comm)
Parties
Claimant: Telenor East Holdings II AS; First Respondent: Altimo Holdings & Investments Limited; Second Respondent: Altimo Cooperatief UA; Third Respondent: VimpelCom Limited
Jurisdiction
England and Wales
Judgment Date
01 March 2011
Procedural Posture
Application for Interim Injunction Under Arbitration Act 1996 S.44 / Interim Relief Pending Constitution of Arbitral Tribunal
Outcome
Injunction refused; undertakings accepted with modification
Legal Topics
Interim Injunctions, Pre Emption Rights, Shareholder Disputes, Preservation of Assets, Balance of Convenience
Arbitration Company Law Interim Injunctions Pre Emption Rights Shareholder Disputes Preservation of Assets Balance of Convenience

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Parties

Telenor East Holdings II AS

Claimant

Altimo Holdings & Investments Limited

First Respondent

Altimo Cooperatief UA

Second Respondent

VimpelCom Limited

Third Respondent

Procedural Posture

Application for Interim Injunction Under Arbitration Act 1996 S.44 / Interim Relief Pending Constitution of Arbitral Tribunal

Legal Issues

  1. 1 Whether interim injunction is necessary to protect Telenor's claimed pre-emption rights under the SHA pending arbitration
  2. 2 Whether undertakings offered by respondents adequately protect Telenor's position
  3. 3 Whether escrow arrangements are necessary or appropriate

Ratio Decidendi

The undertakings offered by the respondents, with minor modification to allow Telenor to challenge the lifting of stop notices, are sufficient to protect Telenor's position pending arbitration. The escrow proposal is not necessary and would cause disproportionate prejudice to VimpelCom and its shareholders. The balance of convenience favours accepting the undertakings rather than granting the injunction or ordering escrow.

Court Disposition

Injunction refused; undertakings accepted with modification

Orders

  • Respondents to provide undertakings as set out in the draft order dated 28 February 2011, subject to modification allowing Telenor to challenge the lifting of stop notices.
  • Liberty to apply to the arbitral tribunal or the court if further relief is required pending arbitration.