Cable TV firm sues Wharf

WHARF (Holdings) confirmed yesterday it is being sued by United International Holdings (UIH) in the United States.

In a statement issued yesterday, Wharf (Holdings) said legal proceeding against it and other parties have begun in Denver, Colorado, and the company would defend the case vigorously.

'It [Wharf] denies that any agreement for the sale of shares was ever reached with UIH or that UIH have any grounds for claiming that they are entitled to invest in the cable TV franchise,' it says.

Wharf also confirmed that it had served a motion to the US Federal Court to compel arbitration to Hong Kong.

'The claim relates entirely to a Hong Kong project. The only agreement which any Wharf company has with UIH is governed by Hong Kong law . . .' the statement says.

The plaintiff, UIH, has accused Wharf of breaching a cable TV contract potentially worth hundreds of millions of dollars. It claims that Wharf (Holdings) has agreed to let it acquire a 10 per cent stake of Wharf Cable in return for the UIH's assistance in obtaining a cable TV franchise.