The key FBM KLCI fell briefly below the crucial 1,600 level in afternoon trade on Monday on mounting selling pressure in line with the key Asian markets.
KUALA LUMPUR: Genting Malaysia Bhd
's share price was hammered in early morning trade after news broke that it was suing Disney Co and Twenty-First Century Fox Inc for more than US$1bil for pulling out of a contract for a Twentieth Century Fox World theme park.
At 9.28am, Genting Malaysia was trading 50 sen or 13.9% lower at RM3.10 on the back of 85.72 million shares traded. Holding company Genting was down 32 sen or 4.6% to RM6.58 with turnover of 3.31 million shares.
Reuters reported Genting's allegations that Disney wants to end the contract to avoid associating with a gaming company, which does not fit into its family-friendly brand strategy.
"Given that FEG had no right to terminate the Agreement, Fox and Disney are liable for what will exceed a billion dollars in damages attributable to the bad-faith behaviour of both Fox and Disney," the complaint said.
Genting Malaysia said it had already made a "$750 million-plus investment" in Fox World. It is also seeking punitive damages.
"The litigation is not expected to impact GENM’s current business operations. As with any litigation, the validity of the causes of action and the availability and extent of GENM’s damages and other requested relief cannot be ascertained at this juncture and will depend on the outcome of the legal proceedings against the Defendants," said Genting Malaysia in its filing with Bursa Malaysia.
"As such, GENM will make the necessary announcements once there is a material development in relation to the above matter."
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