Suez Sues Hungarian City for Canceling Contract, Nemzet Says

Suez Environnement Co. (SEV), Europe’s second-largest water company, filed a claim for 32.3 million euros ($44 million) compensation at a Vienna-based arbitration court after the Hungarian city of Pecs terminated a contract, Magyar Nemzet reported.

Pecs city council rejects the claim, according to the newspaper.

The council canceled in 2009 a 25-year contract with Pecsi Vizmuvek Zrt., of which Suez Environnement owns 48 percent and Pecs 51 percent, and set up its own company, Nemzet said.

To contact the reporter on this story: Edith Balazs in Budapest at ebalazs1@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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