Russian tycoon loses US$53 million deposit on French villa

NICE, France: A Russian billionaire who failed to complete a deal to buy one of France's most beautiful houses also lost his deposit on March 1, to the tune of €39 million (RM180 million).

Mikhail Prokhorov had made several bids to buy the sprawling villa Leopolda de Villefranche-sur-Mer before owner Lily Safra accepted a price of €390 million in 2008.

But Prokhorov, a nickel magnate who topped Russia's rich list last year according to business magazine Finans, pulled out of the sale as the financial crisis broke in late 2008.

Since then, he has been trying to recover the 10% deposit he paid for the villa, which is perched between Nice and Monaco and was built for Leopold II of Belgium.

The court in the southern city of Nice said on March 1 that Safra did not need to pay Prokhorov back the deposit of €39 million.

"We have lost," said Prokhorov's lawyer Jean-Pierre Gastaud. "The court decided that the notarised document was perfectly legitimate." He said he would advise Prokhorov to appeal. Safra, widow of banker Edmond Safra, said the deposit would be donated to medical research institutions.

"The law has been applied, and justice has prevailed," she said in a statement on March 1. -- Reuters