Swiss judgment in dispute over Austrian "Kronen Zeitung"
Germany's Funke Medien has been rebuffed by the Federal Court in its battle for control of Austria's Kronen Zeitung against the Dichand founding family. The judges in Lausanne dismissed Funke Medien's objections to an arbitration award.
According to the Federal Court's ruling published on Wednesday, Funke Medien terminated two agreements dating back to the 1980s that set out the legal relationship between the parties. Funke Medien's goal for years has been to acquire a majority stake in the influential Kronen Zeitung.
An arbitration court in Zurich concluded in May last year that the two contracts were still valid. If Funke Medien were to terminate the contracts, this would also result in the dissolution of the actual company. Funke Medien would then have to transfer its shares in Kronen Zeitung to the widow of newspaper founder Hans Dichand and his three children at a favorable book value.
Before the Federal Supreme Court, the losing media company complained that the arbitration tribunal had not been correctly composed and that its right to be heard had been violated. The Federal Supreme Court rejected both points of criticism. (SDA)
