A plan to introduce "web enabled" automated teller machines in Australia has unravelled into a suit and countersuit among the partners in the erstwhile plan.

Metyor Inc. (Metyor), a Bermuda Stock Exchange Listed company formerly known as Talisman, issued a statement on Tuesday concerning its litigation against the Bank of Queensland Ltd. (BOQ) and one of its subsidiaries.

The deal began in March 2000 when Metyor, Saracen Financial Services Limited (Saracen) which is now controlled by Metyor, BOQ and Compaq Computer Australia Limited (Compaq), entered into a joint venture agreement for the purpose of providing ATM services through new "web-enabled" ATM's to be rolled out through the joint venture.

Metyor and Saracen hold a 22.5 percent stake each (a total of 45.1 percent), BOQ held 49.9 percent and Compaq five percent on the joint venture company or "JVCo".

It was intended the JVCo would first roll out 300 "web enabled" ATM's 81 of which were to replace BOQ's current ATM's.

The dispute centres on four conditions to which the parties were obliged to use the "best endeavours" to satisfy; the adoption of a business plan and budget, the obtaining of financing for the project, and for BOQ to get regulatory approvals.

BOQ was to underwrite minimum transaction levels from these 300 machines being 3,500 transactions per machine per month at an average transaction fee of A$0.71 for the five years following the "go live" date of the project, a total underwriting commitment of approximately Australian $45 million.

Metyor claims that although the business plan and budget had been adopted, and the funding proposals "more favourable to BOQ" than to the other partners had been submitted to BOQ.

In February this year, "good faith" negotiations started to find an alternative to the joint venture but the Metyor claim "it became apparent to Talismanthat BOQ was not acting in good faith and had no desire to proceed" with the deal or any similar proposal.

On April 11, Metyor served a notice of breach of contract on BOQ and 12 days later Metyor's lawyers advised BOQ that Metyor would be commencing proceedings, but later that day, BOQ's lawyers advised Metyor that BOQ had instituted proceedings to wind up JVCo.

The following day Metyor instituted proceedings against BOQ for, amongst other things, breach of contract, failure to act in good faith and seeking specific performance of BOQ's obligations and in the alternative damages.

Both sets of proceedings have now been consolidated into one set of proceedings with BOQ's winding up application to be incorporated in its counter claim to Metyor's claims against it.

In addition Saracen has now joined as a plaintiff in the proceedings raising claims against BOQ identical to Metyor's claims.

Metyor also claim to have an affidavit purporting to show BOQ wanted to withdraw from the deal as early as September 2000.

By Metyor's reckoning, based on the minimum number of ATM's contemplated (300), value of the new company would have been between A$100 million and A$150 million putting Metyor's and Saracen's combined stake would be between A$45.1 million to A$67.65 million.

And if 1,000 ATM's had come online, that the could have been between A$600 million and A$800 million and the plaintiff's combined stake would have been between A$270.6 million and A$360.8 million.