Telkom loses court case

JOHANNESBURG – A South African court has ruled against fixed-line phone company Telkom in a US$130 million dispute over a cancelled contract with US software and IT services company Telcordia, Telkom said on Wednesday.

The Supreme Court of Appeal had upheld an appeal by New Jersey-based Telcordia Technologies over the cancellation of a service agreement in 1999, and Telkom would now study the options open to it, the company said in a statement. Telkom legal services executive Anton Klopper told Reuters Telcordia was seeking US$130 million in damages but that a fair settlement price would be about US$50 million.He said it was too early to say whether Telkom would try to challenge the verdict.Telkom said in its interim results statement earlier this month it had not made a provision for any damages should it lose the legal battle over the cancellation of a service agreement in 1999.Nampa-ReutersTelkom legal services executive Anton Klopper told Reuters Telcordia was seeking US$130 million in damages but that a fair settlement price would be about US$50 million.He said it was too early to say whether Telkom would try to challenge the verdict.Telkom said in its interim results statement earlier this month it had not made a provision for any damages should it lose the legal battle over the cancellation of a service agreement in 1999.Nampa-Reuters