COURT CONTINUES HEARING ALFA-SERVIS LAWSUIT

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MOSCOW, August 16 (RIA Novosti) - On September 23, the Moscow Court of Arbitration plans to continue hearing the Alfa-Servis lawsuit contesting the results of an investment tender for 40% of TNK shares.

A RIA Novosti correspondent reported from the court that on Monday preliminary hearings will end and that at the next session the court plans to start hearings of the case.

On Monday, the court ruled in favor of the plaintiff and said that arbitration assessors could participate in the hearings.

TNK, British Petroleum, as a shareholder of the new TNK-BP, and Novy Holding are defendants in the case.

In July 1997, Novy Holding, founded by the Alfa Group and Renova, won an investment tender to purchase 40% of TNK. Under the terms of the tender, Novy Holding had to invest more than $630 million into TNK over two years.

On Monday the court stopped hearing the lawsuit against Novy Holding in view of its liquidation.

The representatives of the plaintiff did not go to today's session. The TNK lawyers told reporters after the session that they regard the lawsuit unfounded. They noted that Alfa-Servis did not bring evidence that it was a TNK shareholder. The lawyers also pointed out that Alfa-Servis was founded and registered on August 19, 2003. "Proceeding from this fact we draw the conclusion that the rights of Alfa-Servis could not be violated by a deal concluded seven years ago," a TNK spokesman told reporters.

The TNK lawyers said that the lawsuit was based on the materials from the Russian Audit Chamber, which checked the results the sale of TNK shares. However, before the actual hearing, they refused to comment on what the plaintiff was referring to.

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