The French taxpayer will compensate Bernard Tapie
We live in a formidable era!
September 2, 2005 ****
Friday, September 30, 2005
Adidas affair: The State (and therefore the French taxpayer) ordered to pay 135 million euros to Tapie
PARIS (AFP) - The State, through the Consortium de réalisation (CDR), a public body responsible for assuming the past management of Crédit Lyonnais, was ordered Friday to pay 135 million euros to Bernard Tapie, in the dispute over the sale of Adidas to Robert-Louis Dreyfus in 1993-1994. The sum of 135 million "is not what seems most important to me. What is important is the ruling that clearly says that they upheld the untenable and that they robbed me," declared the former businessman interviewed by telephone. Since 1996, the minority shareholders of Bernard Tapie Finance (BTF), that is to say essentially the businessman himself, had reproached Crédit Lyonnais for having cheated them, by depriving them of a significant capital gain during the sale of the sports equipment group to Mr. Dreyfus. Represented by the liquidators of his group, the former businessman was claiming 990 million euros for the harm he estimated he had suffered. The 3rd chamber of the Paris court of appeal found in his favor on the merits by ruling against Crédit Lyonnais and the CDR, while awarding him a smaller sum than that requested; 135 million euros in damages.
If Crédit Lyonnais is named in the ruling, only the CDR,
that is to say the State and indirectly the taxpayers, will have to assume payment of the 135 million euros
.
The body is also ordered to pay 300,000 euros in procedural costs to the liquidators of BTF. In its ruling, the 3rd chamber clearly emphasized that the bank should have informed its client of the fact that Robert-Louis Dreyfus was acquiring Adidas. "The obligation to inform one's principal, the duty of loyalty, the concern for the professional ethics of any bank, in particular a business bank, required making known to Mr. Tapie, a client benefiting from considerable and constant financial aid since 1977, on the one hand that a buyer had been contacted to ensure the management of Adidas (...) and on the other hand that Crédit Lyonnais was ready to finance the operation, and therefore to continue lending for Adidas," notes the ruling. "The Crédit Lyonnais group, by acting as counterparty through intermediaries and by not loyally informing its client, did not respect the obligations of its mandate," continues the ruling, which adds: "the nullity of the sale of Adidas not being able to be pronounced, the company having been resold by Robert-Louis Dreyfus (...), the claim for damages should be granted." The court of appeal also notes that the sale to Robert-Louis Dreyfus of the 78% of Adidas owned by Bernard Tapie could have taken place directly, without the intermediary of Crédit Lyonnais.
Because of the bank's errors, the court estimates at approximately 66 million euros the harm suffered in 1995 by Bernard Tapie, which, increased by the cost of living and upward variations (+ 370% since 1995) in the Adidas share price, represents 135 million euros today.
In the CDR's entourage, it was emphasized that the decision was being analyzed "carefully" and that no decision had been taken "for the moment" on a possible appeal. The CDR "has two months" to refer the matter to the Court of Cassation, it was specified, recalling that the 135 million obtained by Bernard Tapie will serve to wipe out part of his debt toward the consortium, which amounts to more than 200 million euros. During a press conference on Friday afternoon, one of Mr. Tapie's lawyers, Me Maurice Lantourne, had for his part asserted: "we could have settled the liabilities before but these sums will come to cover this liability, I hope the doors will open and that the problem will be definitively settled."
Friday, September 30, 2005
Adidas affair: The State (and therefore the French taxpayer) ordered to pay 135 million euros to Tapie
PARIS (AFP) - The State, through the Consortium de réalisation (CDR), a public body responsible for assuming the past management of Crédit Lyonnais, was ordered Friday to pay 135 million euros to Bernard Tapie, in the dispute over the sale of Adidas to Robert-Louis Dreyfus in 1993-1994. The sum of 135 million "is not what seems most important to me. What is important is the ruling that clearly says that they upheld the untenable and that they robbed me," declared the former businessman interviewed by telephone. Since 1996, the minority shareholders of Bernard Tapie Finance (BTF), that is to say essentially the businessman himself, had reproached Crédit Lyonnais for having cheated them, by depriving them of a significant capital gain during the sale of the sports equipment group to Mr. Dreyfus. Represented by the liquidators of his group, the former businessman was claiming 990 million euros for the harm he estimated he had suffered. The 3rd chamber of the Paris court of appeal found in his favor on the merits by ruling against Crédit Lyonnais and the CDR, while awarding him a smaller sum than that requested; 135 million euros in damages.
If Crédit Lyonnais is named in the ruling, only the CDR,
that is to say the State and indirectly the taxpayers, will have to assume payment of the 135 million euros
.
The body is also ordered to pay 300,000 euros in procedural costs to the liquidators of BTF. In its ruling, the 3rd chamber clearly emphasized that the bank should have informed its client of the fact that Robert-Louis Dreyfus was acquiring Adidas. "The obligation to inform one's principal, the duty of loyalty, the concern for the professional ethics of any bank, in particular a business bank, required making known to Mr. Tapie, a client benefiting from considerable and constant financial aid since 1977, on the one hand that a buyer had been contacted to ensure the management of Adidas (...) and on the other hand that Crédit Lyonnais was ready to finance the operation, and therefore to continue lending for Adidas," notes the ruling. "The Crédit Lyonnais group, by acting as counterparty through intermediaries and by not loyally informing its client, did not respect the obligations of its mandate," continues the ruling, which adds: "the nullity of the sale of Adidas not being able to be pronounced, the company having been resold by Robert-Louis Dreyfus (...), the claim for damages should be granted." The court of appeal also notes that the sale to Robert-Louis Dreyfus of the 78% of Adidas owned by Bernard Tapie could have taken place directly, without the intermediary of Crédit Lyonnais.
Because of the bank's errors, the court estimates at approximately 66 million euros the harm suffered in 1995 by Bernard Tapie, which, increased by the cost of living and upward variations (+ 370% since 1995) in the Adidas share price, represents 135 million euros today.
In the CDR's entourage, it was emphasized that the decision was being analyzed "carefully" and that no decision had been taken "for the moment" on a possible appeal. The CDR "has two months" to refer the matter to the Court of Cassation, it was specified, recalling that the 135 million obtained by Bernard Tapie will serve to wipe out part of his debt toward the consortium, which amounts to more than 200 million euros. During a press conference on Friday afternoon, one of Mr. Tapie's lawyers, Me Maurice Lantourne, had for his part asserted: "we could have settled the liabilities before but these sums will come to cover this liability, I hope the doors will open and that the problem will be definitively settled."
Back to Guide Back to Home page
**Number of visits to this page since September 2, 2005: **