Wednesday 26th June 2013
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Mainfreight, the global logistics company, intends mounting a compensation claim against the former owners of Netherlands-based Wim Bosman over the loss of a major customer.
The company has "notified the former owner that it intends to bring a claim" but hasn't started court proceedings, it said in a statement. Mainfreight bought Wim Bosman in 2011 for up to 120 million euros if certain targets were met, expecting to get a foothold in Europe and grow earnings.
Instead, Mainfreight lost key trading accounts in its first 12 months of ownership while having to cope with poor trading conditions in the face of a European recession, while bedding in the operations. While two of the customer losses were expected after Mainfreight's due diligence, the third came as a surprise, it said.
"Any claim against the former owner must, in accordance with the purchase agreement, be brought by arbitration," the company said. "If Mainfreight commences arbitration proceedings against the former owner it will make an announcement at that time."
The shares were unchanged at $10.62 today, and have shed 9.2 percent this year.
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