The bitter battle between Lebanese businessmen and brothers Johnny and Jacques Saade over the ownership of the world’s third largest container company continues. For the past decade, the two have been engaged in numerous court battles.
The following report comes from a press release Al Bawaba received from Mr. Johnny Saade’s attorney, Antoine El Kozah, following an article published on albawaba (http://albawaba.com/en/news/217428).
Albawaba's goal is to provide its visitors with objective news reporting and thus brings this press release on behalf of Johnny Saade’s attorney. Albawaba is not in a position to decide who is right or who is wrong in this case.
Press release on Saade feud:
The family feud began in 1996 following CMA's takeover of French state-run CGM. Johnny subsequently filed a lawsuit against Jacques claiming that he had intentionally concealed facts about CMA-CGM's financial status and management, although the two bothers are co-partners in the company.
In 2000 the two brothers reached a settlement, and Johnny sold his share of the company for about USD 40 million.
Rumors claim that since the settlement Johnny has continued to attack Jacques and CMA-CGM, and that Johnny’s company Mistral Holding had suffered numerous setbacks.
In addition, rumors claim that in 2006 an order issued by a British court prevented Johnny and his associates from continuing their alleged campaign against his brother through letters, internet websites and newspaper articles.
More recently an interim order was issued by the High Court of Justice in London on 11 July 2007 forbidding Johnny from directly or indirectly engaging in any sort of prejudicial action against CMA-CGM. The order addressed by court to Johnny read, "If you disobey this Order you may be found guilty of Contempt of Court and you may be sent to prison or fined or your assets may be seized".
Johnny’s lawyers responded, stating that what has been published in recent news articles about him is false and was ‘leaked’ to the press with the sole aim of hurting Johnny.
Disputes between Johnny and Jacques have become a public matter that began when Jacques decided to take over French company CMA-CGM and its subsidiaries after the government privatized it.
Johnny filed a lawsuit against Jacques in France claiming that Jacques intentionally hid the conditions of privatization and the value of the company, and that he incurred USD300 million and large containers from the takeover.
Jacques was prohibited from managing CMA-CGM and traveling to other European countries, and was placed under investigation.
The settlement in 2000 led Johnny to drop all lawsuits against his brother, contrary to what rumors claimed that Johnny lost the suits and was fined.
After the reconciliation was made Johnny discovered that Jacques had in fact concealed the actual value of CMA-CGM and had bought Johnny’s share for a much lower price than its actual value.
Johnny then filed another lawsuit against Jacques in Lebanon. The judge ruled in Johnny’s favor and all company documents for CMA-CGM’s headquarters in Marseille were confiscated by government officials.
On 7 May 2007 a US court fined Mistral Holding and owner Johnny USD 95 million for publishing false and defamatory statements about Jacques and his role as the chairman of CMA-CGM.
Johnny had hired Alain Menargues, a French journalist to write a book about the conflict, but as a result of strong disagreements with Johnny, Alan declined half way through. As a result Alan held interviews with different newspapers in which he attacked Johnny and due to the statements he made Johnny filed a lawsuit against him and the court ruled in his favor sentencing him to pay USD83,000 in damages for disparaging accusations made against Mistral Holding. The sentence has taken effect in Lebanon.
Mr. Jan Georgy, a manager at Mistral Holding has not been incarcerated and is free to travel, despite circulating rumors claiming otherwise.
Jacques and Johnny are descendants of a family from the northern Syrian city of Latakia, belong to the Greek Orthodox community. Their father Rodolph inherited the business from his father Gabriel who made a fortune in the early 1900’s thanks to flourishing trade relations between Syria and Alexandria in Egypt. The Saades owned fertile pieces of land yielding cotton, tobacco and olive trees.
