TOLL-ROAD operator ConnectEast yesterday fessed up to the Australian Securities Exchange that it had been served a writ and statement of claim by Leighton Holdings, one of its biggest shareholders.
BusinessDay had already hit the streets with the news.
Leighton subsidiary Thiess John Holland, which built the EastLink toll road for ConnectEast, believes it was misled over traffic numbers, which haven't met forecasts since the road opened in June last year. It has foreshadowed a $400 million claim.
Full Disclosure couldn't help but note that news of the legal claim was made in a statement rather vaguely titled ''Equity raising update''. We suggest that the title ''$400 million legal fight looms with Wal King's cashed-up construction giant'' might have been more accurate, but perhaps such a message was unwanted by the ConnectEast spin team.
Indeed, on the very day the writ was issued by the Victorian Supreme Court, ConnectEast announced to the market ''EastLink Traffic - August 2009''. That missive contained nothing but good news about traffic growth on EastLink, including the line that ''average daily trips was the highest since tolling commenced''.
Wonder if they were trying to get in the first blow before the lawyers descended?
CEU Price at posting:
35.0¢ Sentiment: Hold Disclosure: Held
