Leicester City Council is facing a £2m legal claim from street furniture contractor JC Decaux over a contract to provide bus shelters.
JC Decaux has provided shelters in which it sells advertising panels since 2002 but has said that the council has now awarded the contract to another, unnamed, bidder in a procurement process in which it argues unlawful amendments were made.
The council disputes that this has happened. A city council spokesperson said: “We can confirm that legal proceedings have been issued against the city council by JC Decaux in relation to an ongoing procurement process. They are challenging the award of a bus shelter contract to another party.
“However this process has not concluded and no contract has yet been awarded. The council is responding to the claim.”
The French company had held a 15-year contract covering 500 advertising panels, which it in 2002 forecast would generate advertising revenue of €28m (£24m).