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GfK and UBM Settle Out of Court
GfK has paid UBM, the former owner of NOP World, around 10 million Euros in an out of court settlement of a dispute arising following the 2005 acquisition.
The total consists of an original amount of c.Euros 7m plus interest and UBM's legal cost. GfK says the amount 'is significantly below the amount claimed by UBM and quite in line with most recent management expectations.'
UBM filed a court action making the claim, to discharge certain balances owed by the NOP World companies to UBM, in August 2006 in London. GfK said the claim had no merits in the amount claimed by UBM, and made mention of it / allowance for it in its 2006 annual report, which carried a liability to UBM in the amount of approximately EUR 20 million. The positive effect of the settlement will not impact GfK's adjusted operating income, and on an after tax basis will lead to an EPS increase of approximately EUR 0.30. GfK says it expects its group financial statements for the year 2007 to deliver earnings at the upper end of its guidance: results are scheduled for release 28th February.
The GfK Group achieved sales of 1,112.2 million Euros in financial year 2006, and includes 115 companies covering over 90 countries. Web site: www.gfk.com.
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