Monday February 22, 2:33 pm Eastern Time
Alltel unit countersues Convergys
LITTLE ROCK, Ark., Feb 22 (Reuters) - Telephone company Alltel Corp. said on Monday its 360 Communications subsidiary had filed a breach-of-contract suit against Convergys Information Management Group Inc. (NYSE:CVG - news).
In the suit, 360 asks the U.S. District Court in Cincinnati to declare that it has the right to license Convergys' customer care and billing system.
Last year Convergys, which provides customer management services to telecommunications companies, said it had a pact with 360 that did not allow the licensing of Convergys software. It said the contract ran through 2006.
In December Convergys filed a request for declaratory judgment with the U.S. District Court for the Southern District of Ohio
in Cincinnati, asking the court to confirm its position.
360 provides wireless telecommunications services.
Alltel said it is seeking to license the Convergys billing software until 360 can transition all of its customers to Alltel's customer
care and billing services.
Alltel and 360 merged in 1998.
Francis Frantz, Alltel executive vice president, said in a statement that licensing provisions like the one in question give the
company receiving the service the right, after a minimum period of service commitments, to take the services in-house or to
another vendor.
''In this case, the minimum service commitment was five years and that expired in August 1997,'' he said.
Alltel shares were trading at 60-13/16 on the New York Stock Exchange in the afternoon, up 1-1/4 on the day. The stock has
a 12-month high of 66-7/16 and a 12-month low of 38-1/2.
Convergys shares were trading at 19-1/4 on the New York Stock Exchange in the afternoon, down 1/4 on the day. The stock
has a 12-month high of 23-5/8 and a 12-month low of 9-5/8.
This is nothing to panic about...Alltel would like to continue to use CVG software in their billing process.
Imitation is the highest form of flattery...
There is no danger of CVG loosing any money here.
They are just defending the contract.
Nothing here is detrimental to the stock :))
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