Conduit reaches settlement with BT

Conduit has announced that subsidiary Conduit Enterprises has reached a settlement with BT in relation to a dispute which had arisen concerning a contract from last February under which Conduit agreed to supply directory assistance services to O2 (UK).

The main terms of the settlement require BT without admission of liability to pay Conduit £4.65m (€7.26m) in compensation for lost profits, damages and legal costs, in return for Conduit's withdrawal from High Court proceedings scheduled for hearing on January 13 next.

The O2 contract was not due to finish until November 2003 at the earliest and this settlement, while compensating Conduit for loss of future profits from the contract, may also prevent Conduit from obtaining additional directory enquiry business from O2 (UK) Limited.

As part of the settlement agreement, BT has agreed to withdraw its letter of termination issued in July.

Both parties have agreed a phased withdrawal schedule of Conduit from the contract which will be completed in April 2003.

From that date, Conduit will no longer handle directory calls for O2 (UK).