CORRECTION: A missing sentence added to the first chapter of the bulletin.
LEMMINKÄINEN CORPORATION STOCK EXCHANGE BULLETIN 18.6.2008, at 18:30
CLAIM FOR COMPENSATION FROM THE FINNISH ROAD ADMINISTRATION IN ASPHALT CASE
Lemminkäinen's last bulletin on the case concerning competition restriction on
the asphalt market was released on 19 December 2007, when the Market Court
handed down its decision. The Finnish Competition Authority (FCA) had asked the
Market Court to impose an infringement fine of EUR 68 million on Lemminkäinen.
The Market Court denied the FCA's request for the most part and ordered
Lemminkäinen to pay an infringement fine of EUR 14 million. The parties have
appealed the matter to the Supreme Administrative Court, before which the case
is currently pending.
Lemminkäinen has today been informed of an application for a summons in which
the Finnish Road Administration is demanding compensatory damages from different
asphalt companies before the Helsinki District Court. Lemminkäinen's share of
the claimed compensation is at most EUR 10.5 million. The Finnish Road
Administration is also seeking damages of at most EUR 5.6 million from
Lemminkäinen, under joint and several liability with other defendant companies.
The FCA justifies its claim on the grounds that alleged restrictions of
competition among the asphalt companies would have raised the price level of
asphalt pavements in certain years. The claim is based on assertions made by the
Finnish Competition Authority concerning the price level, which Lemminkäinen has
contested both in the Market Court proceedings and in its statements to the
Supreme Administrative Court.
The Finnish Road Administration has asked the Helsinki District Court to
postpone the hearing of the case until the competition restriction case has been
resolved in the Supreme Administrative Court. Lemminkäinen concurs with the
Finnish Road Administration's request.
Managing Director Juhani Sormaala, Lemminkäinen Corporation, tel. +358 2071
Lemminkäinen Group operates in all areas of the construction sector. Its main
business sectors are building construction, infrastructure construction,
technical building services, and building products. Net sales in 2007 were
approx. EUR 2.2 billion, of which international operations accounted for over a
quarter. The Group employs about 9,200 people. Lemminkäinen Corporation's share
is quoted on OMX Nordic Exchange Helsinki.