Gigaset AG (GGS), the Munich-based maker of cordless telephones, fell to the lowest since November 2010 after Evonik Degussa GmbH filed proceedings against it at the German Institution of Arbitration.
Gigaset fell as much as 9.2 percent and traded down 6.8 percent at 1.88 euros as of 11:11 a.m. in Frankfurt.
Evonik is demanding a penalty payment of 12 million euros ($15.8 million) on the basis of a contract entered into in 2006, Gigaset said in a statement yesterday.
Gigaset said it rejected Evonik’s “allegations and claims.” The company said it has “adequate provision for risk of loss in the 2011 financial statements.”
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