Dividend debate divides director and investors

30 Mar 2005

Serbia’s second-largest cellco Mobtel Srbija is engaged in a heated dispute with one of its shareholders, state post and telecoms company PTT Serbia, over the operator’s refusal to pay a EUR52 million dividend. Despite public claims by Mobtel General Director Patrick Harpur that the cellco is working hard to settle all of its outstanding debts, he refuses to acknowledge PTT’s claim for a payout relating to the 1998 and 1999 financial years. Harpur says that the Mobtel Board of the Directors made no such offer of a dividend; instead opting to reinvest the profit made during the period, and has promised to produce documented evidence to support his claim. PTT is unhappy with the director’s answer and is now threatening to turn to the country’s commercial court in pursuit of the money.

Serbia, Telenor Serbia