LONDON (Reuters) - Britain’s Tate & Lyle Plc (TATE.L) said on Wednesday that a U.S. court had found in its favor in a dispute with Whitefox Technologies which an analyst said could win the London-based sweeteners and starch group over 10 million pounds ($15.6 million).
The trial before the Supreme Court of the State of New York related to equipment and technologies supplied by Whitefox for use in Tate’s U.S. ethanol plants at Loudon in Tennessee and Fort Dodge in Iowa which Tate claimed were not fit for purpose.
No comment was made by the company on the level of the award granted to Tate as this is subject to appeal, although analyst Graham Jones at brokers Panmure Gordon estimated that the award is in the order of low double-digit millions of pounds.
Tate’s shares were off 2 percent at 633 pence at 0715 GMT in a slightly firmer London stock market. ($1 = 0.6411 British pounds)
Reporting by David Jones; Editing by Hans-Juergen Peters