QVT granted further injunction

The dispute between QVT and UniCredit over minority shareholders rights rumbles on. QVT has been granted another injunction which prevents Kazakhstan’s ATF Bank using the UniCredit name or brand in any advertising.

QVT, together with Artradis, a Singapore based hedge fund, are seeking fair value for their preference share holdings in ATF Bank following the acquisition of a large stake by Bank Austria Creditanstalt, a subsidiary of UniCredit.

"We are very pleased that the Kazakhstan courts have seen fit to support our application for injunctive relief against ATF Bank to prevent their premature advertising of the UniCredit brand in Kazakhstan. The approach of ATF and UniCredit to this issue seems typical of their 'lowest common denominator' approach to international corporate governance standards,” commented Angelo Moskov, CEO and partner at QVT.

“It is disappointing that the basics of corporate finance valuation of different financial instruments appear to be being ignored by a bank engaged in M&A activities around Europe. It is hard to understand why UniCredit offered the same price to HVB preference shareholders in Germany as to the holders of common stock, yet does not follow the same principle in Kazakhstan.

“We believe it is disrespectful to treat Kazakhstan differently and can only assume that it is an attempt to take advantage of the relative youth of this emerging but promising market. The principles of corporate governance, the foundations of corporate finance, and the fundamental principles of capital markets must be applied in Kazakhstan with the same vigour as in other developed countries,” add Moskov.

The row between QVT and Bank Austria began February 15 when QVT filed a law suit against ATF Bank, trying to prevent them advertising as a member of UniCredit, On March 4 the Specialised Interdistrict Economic Court of Almaty issued a ruling imposing an interim injunction on ATF Bank.

"We have been actively seeking to secure an amicable solution through dialogue with UniCredit – and remain open to continuing this at the first opportunity – but to date this has proved fruitless. As a result we are continuing to pursue legal options in all available jurisdictions to secure a fair price for minority shareholders in ATF Bank,” concluded Moskov.