AGL closes Dingo Blue mobile business, settles Optus dispute

Utilities provider, Australian Gas Light Company (AGL), has announced that it will close down its Dingo Blue mobile phone business.

AGL moved into the IT space with its $22 million acquisition of Dingo Blue from Optus in December 2000. But the acquisition yielded little fruit for the company – closing down its Dingo Blue’s ISP and fixed voice businesses in March 2002, writing off almost twice as much money as what the company paid for the business.

AGL had been keeping the mobile telephony business in operation while it attempted to resolve a dispute with Optus concerning the December 2000 acquisition. AGL was seeking about $85 million from the carrier, accusing it of “breach of warranty in the sale and purchase agreement” and “misleading and deceptive conduct and negligent misrepresentations”.

Optus had also made an $8 million counter-claim over the same disagreement.

The two companies settled the claim late last week, with Optus making a payment of $23 million to AGL, freeing up the utility company to close the dingo blue mobile telephony business.

The service will be shut down on October 31.

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