MONTABAUR (dpa-AFX) - The internet and telecommunications group United Internet has posted a high charge on earnings due to a dispute over the cable group Tele Columbus. In its half-yearly report, the Group made a value adjustment of around 185 million euros on the shares in the holding company Kublai, the main owner of Tele Columbus, United Internet said on Friday evening. United Internet investors reacted indecisively to the news.

The MDax-listed share initially rose to 20.30 euros shortly after the start of trading. However, it was at least able to halt the downward trend from the previous week at the support level of around 20 euros and stabilize at its lowest level for two months. Since the beginning of the year, the share price has fallen by around 12 percent.

According to the Montabaur-based group, it has waived its right to increase the dilution of its own shares to around 5 percent back to 40 percent as part of a capital increase at Kublai. The background to this is a dispute over the valuation of Tele Columbus in the course of the capital increase, which United Internet considers to be too low and thus the dilution of its own shares to be too high.

According to a statement, United Internet CEO Ralph Dommermuth now intends to initiate a contractually agreed so-called anti-dilution procedure and have the valuation of Tele Columbus reviewed by an arbitration court.

If successful, Dommermuth expects to receive a compensation amount of around 300 million euros. The majority shareholder of Kublai is the US investment bank Morgan Stanley. Morgan Stanley Infrastructure and United Internet had different views on the future financing of Kublai, it was said - which is why United Internet no longer wants to invest in the vehicle.

"The outcome of the whole matter is unclear," said a Borsen trader. However, if compensation is paid, this would be positive in the longer term./men/lew/niw/mis