Millicom Persuades Court to Rethink Potential $77 Million Payout

A New York appellate panel has ordered a lower court judge to rethink the potential $77 million judgment issued against Millicom International Cellular SA over a failed business deal with Spanish phone company Telefónica SA.

The New York Supreme Court First Appellate Department agreed with the lower court that Millicom breached its contract when it failed to complete its purchase of Telefónica’s mobile communications business in Costa Rica. The judges, however, disagreed that Millicom should have to pay prejudgment interest on the full contract price of $627 million—rather than on the $62 million of damages.

Millicom in its brief explained ...