Catalyst Capital Group is suing Wind Mobile founder’s investment firm Globalive Capital and a consortium of investors of conspiracy and breaching an exclusivity agreement — all that just to buy Wind Mobile for themselves.
The court documents filed in the Ontario Superior Court of Justice this week, obtained by the Financial Post, show Catalyst’s version of the story which still awaits evidence. The Toronto-based private equity firm says Globalive and West Face Capital used confidential information from Catalyst’s negotiations with VimpelCom — former owner of Wind Mobile — to kill Catalyst’s deal and acquire the struggling wireless carrier.
As a result, Catalyst estimates it has lost $750 million, the sum it would have earned (in case it overtakes Wind Mobile) thanks to the Shaw’s $1.6 billion acquisition offer of the carrier. Catalyst also wants $1 million in punitive damages for the alleged conspiracy, the document reveals.
Catalyst states it has finalised — in principle — an exclusive deal with VimpelCom, but Anthony Lacavera, CEO of Wind has “caught wind” of the exclusivity arrangement from the bank involved and worked out a better deal behind scenes, which ultimately lured VimpelCom into breaching its contract.
VimpelCom has stalled its negotiations with Catalyst and finally sold its stake in Wind Mobile to the consortium of investors who backed Globalive — after the exclusivity arrangement expired on Aug. 19, 2014.
West Face CEO denies Catalyst’s allegations, while Lacavera wasn’t available for comment. Meanwhile Catalyst will need to prove its allegations.