NEW YORK // A lawyer for the Abu Dhabi Investment Authority (Adia) has urged a judge in the United States to overturn an arbitration panel's ruling favouring Citigroup in a dispute over a US$7.5 billion (Dh27.5bn) investment in Citi during the subprime meltdown.
Adia, which was created in 1976 and invests on behalf of the Abu Dhabi Government, last year lost the arbitration case, which sought $4bn in damages from what it said were fraudulent representations by Citi leading up to the deal.
At a hearing in the US district court in Manhattan, a lawyer for the fund said the arbitrators applied the wrong law to come to the decision. "They manifestly disregarded the principles," David Elsberg, a lawyer for Adia, said on Thursday.
Judge George Daniels repeatedly pressed Mr Elsberg on how the arbitrators used the wrong legal analysis. "You can't simply say they gave them credit for 10 things and us for eight, and so that's a manifest disregard of the law," he said.
Adia bought into Citigroup in November 2007, as the bank moved to boost its balance sheet following billions of dollars in writedowns from subprime mortgage investments.
Under the deal, Citi bonds bought by Adia would convert to common stock in 2010 and last year, at prices of between $31.83 and $37.24 between March 2010 and September last year.
But in December 2009, Adia began arbitration, accusing Citi of "grossly misstating" the bank's financial condition, according to court papers. Adia sought to rescind the investment or receive $4bn in damages.
Shares in Citi on the day it disclosed the arbitration in 2009 had closed at $3.56. By the close of trade on Thursday, they were much higher, at $36 a share and down 0.14 per cent on the day.
In October last year, a three-arbitrator panel of the International Centre for Dispute Resolution of the American Arbitration Association issued an award finding Adia had failed to establish its claim. Adia went to court in January seeking to vacate the award.
The fund argues that the arbitration tribunal incorrectly applied New York law to its claims of fraud rather than those of Abu Dhabi, which do not require as much proof.
Mr Elsberg said applying the wrong law to the case was equal to a baseball umpire using the wrong rule book. "Because of the choice of law, it was judged against the wrong standard," Mr Elsberg said.
But the Citigroup counsel, Leslie Fagen, said the panel had laid out all the factors for why it would follow New York law instead. "They went through everything," he said. "They didn't disregard anything."
In court papers, Citigroup has also argued the court should confirm the award.
Star Wars: Episode I – The Phantom Menace
Developer: Big Ape Productions
Publisher: LucasArts
Consoles: PC, PlayStation
Rating: 2/5
COMPANY PROFILE
Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends
UAE currency: the story behind the money in your pockets
Confirmed bouts (more to be added)
Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez
Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.
ROUTE TO TITLE
Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2
MATCH INFO
Manchester United 1 (Greenwood 77')
Everton 1 (Lindelof 36' og)
The stats and facts
1.9 million women are at risk of developing cervical cancer in the UAE
80% of people, females and males, will get human papillomavirus (HPV) once in their lifetime
Out of more than 100 types of HPV, 14 strains are cancer-causing
99.9% of cervical cancers are caused by the virus
A five-year survival rate of close to 96% can be achieved with regular screenings for cervical cancer detection
Women aged 25 to 29 should get a Pap smear every three years
Women aged 30 to 65 should do a Pap smear and HPV test every five years
Children aged 13 and above should get the HPV vaccine
Sri Lanka squad for tri-nation series
Angelo Mathews (c), Upul Tharanga, Danushka Gunathilaka, Kusal Mendis, Dinesh Chandimal, Kusal Janith Perera, Thisara Perera, Asela Gunaratne, Niroshan Dickwella, Suranga Lakmal, Nuwan Pradeep, Dushmantha Chameera, Shehan Madushanka, Akila Dananjaya, Lakshan Sandakan and Wanidu Hasaranga
COMPANY PROFILE
Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
The bio
Job: Coder, website designer and chief executive, Trinet solutions
School: Year 8 pupil at Elite English School in Abu Hail, Deira
Role Models: Mark Zuckerberg and Elon Musk
Dream City: San Francisco
Hometown: Dubai
City of birth: Thiruvilla, Kerala
Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
The Specs
Price, base Dh379,000
Engine 2.9-litre, twin-turbo V6
Gearbox eight-speed automatic
Power 503bhp
Torque 443Nm
On sale now
Specs
Power train: 4.0-litre twin-turbo V8 and synchronous electric motor
Max power: 800hp
Max torque: 950Nm
Transmission: Eight-speed auto
Battery: 25.7kWh lithium-ion
0-100km/h: 3.4sec
0-200km/h: 11.4sec
Top speed: 312km/h
Max electric-only range: 60km (claimed)
On sale: Q3
Price: From Dh1.2m (estimate)
The specs
Engine: 1.5-litre 4-cyl turbo
Power: 194hp at 5,600rpm
Torque: 275Nm from 2,000-4,000rpm
Transmission: 6-speed auto
Price: from Dh155,000
On sale: now
Generation Start-up: Awok company profile
Started: 2013
Founder: Ulugbek Yuldashev
Sector: e-commerce
Size: 600 plus
Stage: still in talks with VCs
Principal Investors: self-financed by founder
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
COMPANY PROFILE
Name: Kinetic 7
Started: 2018
Founder: Rick Parish
Based: Abu Dhabi, UAE
Industry: Clean cooking
Funding: $10 million
Investors: Self-funded