Swiss judgment in dispute over Austrian "Kronen Zeitung"
Funke Medien from Germany has lost its battle for supremacy at the Austrian Kronen Zeitung against the founding Dichand family in the Federal Court. The judges in Lausanne have rejected 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)
