Shares in Singapore-based former New Zealand investment company BIL International gave up some of last week's gains yesterday after the company said it was being sued in Hong Kong for $23.74 million.
BIL - currently the subject of a takeover offer from Hong Kong firm Guoco - told the Singapore
stock exchange that the legal proceedings concerned a claim under warranty contained in a share agreement dated 11 years ago.
BIL did not say who had lodged the claim but it was taking legal advice on the matter.
Shares in BIL - formerly New Zealand corporate raider Sir Ron Brierley's Brierley Investments - closed 5c or nearly 5 per cent lower at $1.03 yesterday on the New Zealand sharemarket.
They had climbed to six-year highs after Guoco confirmed its bid last week.
Guoco - controlled by Malaysian tycoon Tan Sri Quek Leng Chan - is offering S$1.20 ($1.07) for all the BIL shares it does not already own.
Guoco was obliged to make the offer after moving to a 39.95 per cent stake in the company with the purchase of a 10.12 per cent holding from private equity firm Longleaf.
BIL's main asset is the Thistle hotels group, which it took private in 2003 for $1.6 billion. Thistle's website lists 49 hotels, 20 of which are in London.
- NZPA
