Thursday, July 16, 2009

Merrill lost in Indonesian court

South Jakarta District Court ordered Merrill Lynch Indonesia to pay US$25 million compensation to Harjani Prem, owner of Renaissance Capital. 
According to the verdict, Merrill had illegally sold shares, committed defamation against Prem in filing report to Bapepam (capital market supervisory agency) without strong legal evidences, and illegally hiring private investigators.
Merrill's lawyer, Frans Hendra Winarta, said his client will appeal to High Court to challenge the verdict.
Winarta argued there was no legal relationship between the company that sold shares in Singapore and Indonesian parties. He can't understand why a report to Bapepam is considered as defamation. 
At the center of this case is Merrill's approval to provide loans to Prem to purchase the shares of PT Triwira Insan Lestari (TRIL) Tbk. Merrill called off the loan, and asked Prem to pay in cash US$14.4 million the shares. Merrill then offloaded the shares to other parties.




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