Identifier
Created
Classification
Origin
06BELGRADE75
2006-01-18 13:01:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Belgrade
Cable title:  

SETTLEMENT REACHED IN VALEANT INVESTMENT DISPUTE

Tags:  KIDE EINV EFIN CASC PGOV SR MW OPIC 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS BELGRADE 000075 

SIPDIS

DEPARTMENT FOR EB/IFD/OIA AND L/CID

SENSITIVE

E.O. 12958: N/A
TAGS: KIDE EINV EFIN CASC PGOV SR MW OPIC
SUBJECT: SETTLEMENT REACHED IN VALEANT INVESTMENT DISPUTE

REF: A) 05 BELGRADE 1198 B)04 BELGRADE 2686

UNCLAS BELGRADE 000075

SIPDIS

DEPARTMENT FOR EB/IFD/OIA AND L/CID

SENSITIVE

E.O. 12958: N/A
TAGS: KIDE EINV EFIN CASC PGOV SR MW OPIC
SUBJECT: SETTLEMENT REACHED IN VALEANT INVESTMENT DISPUTE

REF: A) 05 BELGRADE 1198 B)04 BELGRADE 2686


1. (SBU) On December 14, 2005, the GOS and U.S. company
Valeant Pharmaceuticals International (formerly ICN
Pharmaceuticals Inc.) reached an agreement to settle on an
outstanding investment dispute. The history of the case,
which is an ownership dispute, is provided in Reftel A. The
GOS agreed to pay $28 million by March 2006, and an
additional $6 million by March 2007. This settlement is
less than the stipulated $50 million awarded by the
International Court of Arbitration on November 11, 2004
(Reftel B),but potentially resolves one of two ongoing
investment disputes in Serbia and Montenegro.


2. (SBU) Ellen Pruette, Counsel for ICN/Valeant, told
econoff that they are pleased with GOS's acceptance of the
offer but are skeptical on its ability to deliver the first
payment by March 1. Thus far, ICN/Valeant has not received
any documents from the GOS, and counsel is concerned Serbia
may back out of the deal. The Embassy will continue to
urge the GOS to follow through with its commitment.


3. (SBU) Prior to the settlement, Ana Firtel Vlajic, chief
of staff to the Deputy Prime Minister, told econoff that
the GOS was going to accept the offer and wanted to put the
dispute behind them.

MOORE