Baran Group (TASE: BRAN; Pink Sheets:BRANF) filed a NIS 43 million counter-suit against Intel Israel Ltd., the day after Intel Israel sued Baran for breach of contract. Baran accuses Intel Israel of not paying the balance for two buildings that Baran built for the company in Kiryat Gat at a cost of $123 million.
Baran says that Intel Israel is evading its obligation to pay the $4.1 million balance for the buildings that are part of Intel's new fab. Baran is also demanding additional costs and damages in the amount of NIS 40 million. Baran accuses Intel of making false presentations and abusing its dominant market position.
Intel Israel Ltd. has filed a NIS 103 million lawsuit against Baran for failing to meet its commitments in building the central building at Intel's R&D complex in Haifa.
Baran claims that when Intel Israel learned that Baran planned to file the lawsuit, Intel paid $3.5 million on the outstanding balance. Baran adds that the lawsuit that Intel Israel filed yesterday is an attempt at intimidation to forego its own claims.
Intel Israel's IDC9 project involves the construction of tens of thousands of square meters of built-up space at an investment of hundreds of millions of shekels. The project will be part of Intel Corporation's (Nasdaq: INTC) Israeli R&D center at Haifa'sMatam High-Tech Park. The project is strategically important for Intel, both locally and globally. The building is being built to green standards, and will house more than 1,000 employees and an advanced computer center.
In the statement of claim, Intel Israel states that Baran Industries, which is responsible for the project's planning, construction, and delivery on time, has failed in every aspect, causing Intel serious damage. Intel Israel claims that Baran has not met the timetable to which it committed, and that the project is seriously behind schedule.
Published by Globes [online], Israel business news - www.globes-online.com - on September 23, 2009
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