U.S. Enterprises Sues Hainan Airlines for Failed Acquisition: Litigation "Unfounded"

[Global Network Science and Technology Report] In response to a recent foreign media report that the company and IT outsourcing company Vancehaegva failed to acquire in the United States and was sued, China’s HNA Group said on Wednesday that the lawsuit was “unfounded and untrue”. of". US software engineering company Ness Technology sued HNA, accusing the latter of "poisoning and deliberately sabotaging the review process of the U.S. Foreign Investment Commission," resulting in the failure of Pactera’s proposed acquisition of Ness’s Jersey Holding Company for US$325 million. Ness seeks 65 million U.S. dollars in damages. Ness’s lawsuit is the latest blow to Hainan Airlines. It is reported that this company, which is headquartered in Hainan, China, has acquired more than 50 billion U.S. dollars of assets in the world, including significant shares of Deutsche Bank and Hilton Worldwide Holdings Co., Ltd. A spokesperson of the HNA Group said in an e-mail interview with Reuters: “The HNA Group believes that this lawsuit is unfounded and unreasonable. We will actively defend it.” But she did not explain the details. In the lawsuit filed by the Supreme Court of the State of New York, Ness claimed that HNA did not obtain approval from the regulatory authorities through the so-called "best effort" and caused financial damage. In a statement released on Wednesday, the Chinese company Haihui pointed out that in order to meet the US regulatory requirements for foreign investment, a lot of time, manpower, and costs have been invested. Although the company has been working hard, Ness eventually chose to end the transaction. Made false allegations against Pactera. Pactera said that U.S. regulators requested more supplementary information than to dismiss the transaction request. "Ness decided to terminate the contract based on his own interests," said Pactera. In recent weeks, Hainan Airlines has faced various difficulties related to its opaque equity structure, as well as concerns about its liquidity channels and its ability to collect purchase orders. Last month, the Swiss Takeover Panel stated that Hainan Airlines provided false information when it acquired the air service company Gategroup for 1.4 billion Swiss francs (1.4 billion U.S. dollars) last year. Swiss Takeover Panel quoted the British "Financial Times" reports, focusing on holdings of two shareholders, said the information was provided by HNA "untrue or incomplete." However, in an interview with the Financial Times last week, HNA Group refuted its concerns about liquidity, even though it admitted that there was a situation of tight credit at the end of the year due to the fact that banks in China