US suit won't have impact on firm - Taqa

Dubai : Abu Dhabi National Energy Co, better known as Taqa, said yesterday it doesn't expect a suit filed in the US by its former chief executive to have a financial impact on the company.

"We don't expect there to be any impact on the company's financial statements from this suit," Taqa said in a statement to the Abu Dhabi bourse, where the company's shares are listed. Taqa is 75 per cent owned by the Abu Dhabi government.

"The company has not yet been officially notified of any legal suit on this matter to this date," it added.

Appropriate channels

Taqa said on Tuesday it was aware that Peter Barker-Homek, who was replaced as chief executive in October last year, had filed a suit in Michigan against the company and that it will "respond to the filing in due course through the appropriate legal channels."

Barker-Homek accused the company of breach of contract among other allegations, according to a copy of the legal filing in the US. He alleges in the filing that he was forced on October 16, 2009, to sign a severance agreement "under severe duress" by the company and was threatened with arrest and imprisonment if he didn't comply, according to a suit filed on August 27 by his attorney Miller Barondess at the US District Court for the Eastern District of Michigan, Southern Division.

He also alleges Taqa was inappropriately carrying the assets and liabilities of an affiliated company on its balance sheet, and is claiming damages for "humiliation, anxiety, severe emotional distress, worry, fear, and injury to his reputation, in excess of $50 million, plus exemplary damages of $50 million, or according to proof at trial," the filing states.

Taqa yesterday called the allegations "unfounded."

With the latest allegations coming after several alleged clashes between Taqa shares last traded up 0.9% at AED1.18 in a slightly positive overall market.