Challenge to tender process

Publications distributor Newspread has taken a legal challenge to a "flawed" and "unfair" tendering process under which its contract to distribute Ireland on Sundayand Buy & Sellwas terminated, resulting in lost profits of more than € 1.5 million.

Newspread claims Associated Newspapers Ltd operated an unfair and arbitrary tendering process and has also made wrongful use of Newspread's customer database following termination of the commercial relationship between the companies.

The action was entered into the list of the Commercial Court this week by Mr Justice Peter Kelly.

The action arises after Associated purportedly terminated, with effect from August 27th, 2006, agreements under which Newspread had distributed the publications from 1992 and 2001 onwards.