1. BUNGE SAYS OLEINA TRADE MARK IS SUBJECT TO
RAIDERS' ATTACK IN UKRAINE
Bunge Ukraine, Kyiv, Ukraine, Thursday, June 26, 2008
KYIV - Oleina trade mark and CJSC with FI Dnipropetrovsk oil extraction
plant, DOEP (94 % of equity capital belongs to the company Bunge) were
subject to a new raiders' attack.
Raiders are attempting to deprive Bunge of its rights to Oleina TM as well
as to prohibit sale and advertising of sunflower oil under Oleina TM (see
Appendix # 1).
The rights to TM "Oleina" belong to OLEINA S.A. company (Switzerland),
Bunge Ltd's affiliated company (Appendix # 2), and are used by DOEP
under a license agreement.
Nevertheless, the raiders are attempting through manipulations with courts
to prohibit the companies-owners of retail chains LLC METRO Cash and
Carry Ukraine, LLC Omega (VARUS retail chain), P.E. REARDI ("Velyka
Lozhka" retail chain), KS Trading ('Pik' retail chain), "ATB-market" and
Fozzy retail chains to carry out sales and advertising of sunflower oil under
TM "Oleina" produced by DOEP.
"Should the raiders' claims be satisfied, our company will not be able to
maintain the production volumes and wholesale prices at the current level.
As a result we forecast the deficiency of packaged sunflower oil and
increase of retail prices.
Actually, Ukrainian consumer will literally pay the price for raider attack
on one of the most popular marks of sunflower oil", - the Managing director
of Bunge Ukraine Dmitry Gorshunov stated.
All court rulings infringing Bunge's right to Oleina TM were adopted without
notifying the company on holding of corresponding court hearings. Therefore, the raiders succeeded in aggravating the procedure of defense of Bunge Ukraine's own legitimate rights.
In order to eliminate further abuse Bunge Ukraine called upon the President
and Prime Minister of Ukraine to put an end to this raiders' attack and
punishing the guilty persons.
"I'd like to emphasize that we will keep producing and delivering sunflower
oil under Oleina TM to the domestic market. We are also determined to
defend our rights down to the final cessation of the attack at our company, -
Dmitry Gorshunov added.
"We consider the current situation to be an extremely dangerous precedent -
absolutely illegal aggressors' actions lead not only to escalation of food
inflation, but also are the first in the history of Ukraine attempt to
pocket the rights to a trade mark.
If state bodies do not give battle to the actions of the raiders, investors
would be alarmed that the intellectual property rights in Ukraine are not
protected which would drastically worsen investment climate in Ukraine", -
he added.
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Sunflower refined oil Oleina is produced by CJSC with FI DOEP since
1998, at this date it is produced more than 1 billion bottles.
Preparation of raiders' attack to CJSC with FI DOEP had started in the
spring of 2006. On April, 24th, 2007 the Interdepartmental commission has
considered the address of Bunge Ukraine and CJSC with FI DOEP and
decided "to determine that in the situation around CJSC with FI DOEP the
attributes of preparation to raider takeover of the enterprise are observed".
Moreover the Commission gave the corresponding assignments to the
Ministry of Justice and the Supreme council of judges of Ukraine, the Public
Prosecutor Office and the State commission on securities and the stock
market.
Bunge Ukraine is the Ukrainian subdivision of Bunge Ltd, an international
integrated company, operating in the market of agricultural and food
products. Founded in 1818 and headquartered in White Plains, New York,
USA, Bunge has over 22,000 employees and locations in 32 countries.
Bunge is a world leader in the market of bottled edible oils.
Company Bunge is the owner of 94 % of equity capital of CJSC with foreign
investments Dnipropetrovsk Oil Extraction Plant - producers of bottled
refined sunflower oil Oleina, S.E. with FI Suntrade - grain trader, 4
elevators in the Odessa, Dnipropetrovsk, Kirovograd regions and Crimea,
and trade mark Oleina.
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FOOTNOTE: Bunge is a member of the U.S.-Ukraine Business Council
(USUBC), Washington, D.C. The members of USUBC are very concerned
about the serious issue of corporate raidership in Ukraine.
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2. BUNGE UKRAINE LETTER TO UKRAINIAN PRIME
MINISTER YULIA TYMOSHENKO
Thursday, June 26, 2008
Kyiv, Ukraine
Honorable Yulia Volodymyrivna!
Bunge Ukraine address to you with an appeal to undertake urgent measures, aimed to defeat the attempt of raider takeover of Oleina trade mark and CJSC with foreign investments Dnipropetrovsk oil extraction plant, producing refined sunflower oil Oleina (App. ## 1-2).
The basis of our address is a danger of suspension of free and unhampered
sales of sunflower oil Oleina. Thus, Bunge Ukraine was informed that the
persons, pointed out in the App. # 3, are not just misleading the community,
courts and law-enforcement bodies, claiming that Bunge is not the exclusive
in Ukraine owner of TM Oleina, but they are also trying to pocket the rights
for Oleina trade mark and forbid Bunge in judicial order:
+ to advertise and promote the production under TM "Oleina";
+ to sell the sunflower oil under TM "Oleina", produced by CJSC with FI
DOEP.
To company's knowledge actually there is at least six similar suits against
networks of retail trade: METRO Cash and Carry Ukraine, Omega, REARDI,
ATB-Market, Fozzy-Group and KS trading. (Details of the cases which make
harm to the legal interests of Bunge are specified in the Appendix # 4).
In spite of the fact of preparation of raider takeover of CJSC with FI DOEP
was officially acknowledged by the Interagency commission on counteraction
to illegitimate takeover and seizure of the enterprises, neither law
enforcement bodies nor representatives of the judicial system of Ukraine, to
presently did not take any effective actions to protect our enterprise.
Moreover, aggressors get the new and new court determinations on claims
security, which block out the normal operations of CJSC with FI DOEP,
without considering the plaintiffs' complainants essentially.
We hope sincerely, that Your interference will help to prevent the illegal
attempts to forbid the production and sale of one of biggest-selling and
socially meaningful products of mass consumption - sunflower oil "Oleina".
As a matter of fact, in case the distributors and retail networks will be in
judicial order compelled to satisfy illegal requirements of aggressors, the
Ukrainian consumers will be deprived of an opportunity to freely buy their
favourite oil in habitual shops.
In its turn, Bunge Ukraine and CJSC with FI will not be able to maintain the
production volumes at the current level and, hence, to stick to the company's
operating price policy. Thus, there is a danger of the deficiency of
packaged sunflower oil at Ukrainian consumer market and, as a result, price
explosion and social tension.
Bunge Ukraine supports overwhelmingly the initiatives of the Cabinet and
President of Ukraine, aimed on ensuring the protection of the rights and
legal interests of shareholders in the course of resolving the corporate
conflicts, and also the introduction of criminal responsibility for
raidership.
Considering the aforementioned facts You are kindly requested to make an
appropriate legal evaluation of current situation and to take effective
action, aimed to resolve it, including the bringing to responsibility the
guilty persons.
Respectfully,
Dmitriy Gorshunov
Managing Director,
Bunge Ukraine
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3. BUNGE UKRAINE SAYS RAIDERS ATTEMPTING TO
BLOCK SALE OF OLEINA SUNFLOWER OIL AND TAKE
OVER TRADEMARK
Ukrainian News Agency, Kyiv, Ukraine, Thursday, June 26, 2008
KYIV - Bunge Ukraine, which is part of the Bunge agro-industrial and food
corporation and owns the Oleina trademark in Ukraine, has announced that
corporate raiders are attempting to block the sale and advertisement of
sunflower oil under the Oleina trademark and deprive the company of the
right to the Oleina trademark. Bunge Ukraine's press service made the
announcement to Ukrainian News.
In particular, according to the announcement, corporate raiders citing a
court ruling are attempting to prohibit the Metro Cash & Carry Ukraine,
Varus, Bolshaya Lozhka, ATB Market, PIK, and Silpo retail chains from
advertising and selling Oleina sunflower oil produced by the Dnipropetrovsk
oil extraction plant.
"Our company will not be able to maintain its production volume and selling
prices at the current levels if the demands of the raiders are met. As a
result, we are forecasting a emergence of a shortage of sunflower oil and an
increase of retail prices," said Bunge Ukraine's Managing Director Dmytro
Horshunov while commenting on the situation.
The company said that all the court decisions that are violating Bunge
Ukraine's ownership right to the Oleina trademark were made without the
company being notified of the relevant court hearings.
Bunge Ukraine has appealed to President Viktor Yuschenko and Prime
Minister Yulia Tymoshenko for assistance in this situation.
"I want to stress that we will continue to produce and supply the Oleina
sunflower oil on the Ukrainian domestic market. We also intend to defend our
rights until the attack on our company is completely eliminated," Horshunov
said.
Oleina S. A. (Switzerland), which is a subsidiary of Bunge Ltd., owns the
rights to the Oleina trademark, and the Dnipropetrovsk oil extraction plan
used the trademark on the basis of a license agreement.
As Ukrainian News earlier reported, the Bunge corporation acquired the
Cereol group, of which the Dnipropetrovsk oil extraction plant is part, in
2002.
The Dnipropetrovsk oil extraction plant is one of the three largest
producers of vegetable oil in Ukraine and produces its sunflower oil under
the Oleina trademark. Bunge is also one of the leading exporters of grain
from Ukraine.
Bunge presently owns 94% of the shares in the Dnipropetrovsk oil extraction
plant. It also owns the Suntrade grain trader and grain elevators in the
Odesa, Dnipropetrovsk, and Kirovohrad regions, and the Crimea.
===========================================
4. BUNGE SAYS RAIDERS TRYING TO TAKE ITS RIGHTS
TO OLEINA TRADEMARK
Interfax Ukraine Economic, Kyiv, Ukraine, Thursday, June 26, 2008
KYIV - The Bunge international agricultural company says raiders are trying
to take its rights to the Oleina sunflower oil trademark.
"The raiders are trying to take Bunge's rights to the Oleina trademark and
block the sale and advertising of Oleina sunflower oil," according to a
statement by Bunge Ukraine.
According to the statement, the rights to the Oleina trademark belong to
OLEINA S.A. (Switzerland), a subsidiary of Bunge Ltd., and Oleina
sunflower oil is produced at the Dnipropetrovsk edible oil refinery belonging
to the company under a licensing agreement.
The raiders are trying to prohibit the sale and advertising of Oleina
sunflower oil to the following retail chains: Metro Cash&Carry Ukraine Ltd.,
Omega Ltd. (the VARUS supermarket chain), the Reardi private enterprise
(the Bolshaya Lozhka supermarket chain), ATB-Market Ltd., CJSC Fozzy-
Group and CJSC Kstrading (the PIK supermarkets), the statement reads.
The company says all court decisions regarding Bunge's property rights to
the Oleina trademark were made without informing the company about the
hearings.
"To prevent further abuse, Bunge Ukraine addressed Ukraine's president and
premier asking them to assist in deflecting the raiders' attack and
punishing those responsible," the statement reads.
"I want to stress, we will continue the production of Oleina sunflower oil
and will supply it to Ukraine's domestic market. We are also intending to
strive for our rights, including ending the attack on our company," the
press service said, citing Bunge Ukraine Managing Director Dmytro Horshunov.
Oleina sunflower oil has been produced by CJSC with foreign investment
Dnipropetrovsk edible oil refinery since 1998. It has already produced over
1 billion bottles.
Bunge Ukraine is part of the Bunge international integrated company,
operating on the market of agricultural production and food. Bunge Ltd. was
established in 1818 in Amsterdam.
Currently the headquarters of the company is in New York (the United
States). The staff of the company exceeds 22,000 employees in 32 countries.
Bunge is a world leader on the market of bottled vegetable oil.
Bunge owns 94% of CJSC Dnipropetrovsk edible oil refinery. It also owns
the Suntrade grain trader, elevators in Odesa, Dnipropetrovsk, Kirovohrad
regions and in Crimea, and the Oleina trade mark. Earlier, the company
suffered other raider attacks in Ukraine.