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CONFORMED COPY
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1933
For the month of May 2006
BANCOLOMBIA S.A.
(Translation of Registrant's name into English)
Calle 50 No. 51-66
Medellin, Colombia
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
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(Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes No X
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(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-______________.)
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This Report on Form 6-K shall be incorporated by reference into the
registrant's registration statement on Form F-3 (File No. 001-32535).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BANCOLOMBIA S.A.
(Registrant)
Date: May 16, 2006 By /s/ JAIME ALBERTO VELASQUEZ B.
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Name: Jaime Alberto Velasquez B.
Title: Vice President of Finance
(BANCOLOMBIA LOGO)
DECISION OF ARBITRAL TRIBUNAL INITIATED BY
GILINSKI AGAINST BANCOLOMBIA
MEDELLIN, COLOMBIA. MAY 16, 2006.
Bancolombia S.A. ("Bancolombia") hereby informs that today an award was issued
by the Arbitration Tribunal in charge of hearing the proceedings filed by
Messrs. Jaime Gilinski and Isaac Gilinski together with certain foreign
companies against Bancolombia, its board of directors of 1997, its President
Jorge Londono Saldarriaga and its Financial Vice-President Jaime Velasquez
Botero, resolving the dispute relating to the acquisition of the former Banco de
Colombia S.A. by Banco Industrial Colombiano S.A. ("BIC") and the subsequent
merger of these two entities.
The plaintiffs' main claim sought a declaration nullifying the acquisition by
BIC of a majority stake in Banco de Colombia. The petition also contained other
secondary causes of action, seeking in total approximately US$ 675 million.
The Arbitration Tribunal composed by Messrs. Jose Alejandro Bonivento Fernandez,
Cesar Hoyos Salazar and Jorge Santos Ballesteros ruled in favor of Bancolombia
on the majority of the claims.
However, the Tribunal ruled that Bancolombia should pay Ps 40,570 million to the
plaintiffs with respect to their allegations of insufficient capitalization
compensated with external borrowings.
The Arbitration Tribunal denied all the plaintiffs' claims against the senior
management and exonerated them from all liability, ordering the plaintiffs to
pay the court costs.
In addition, the Arbitration Tribunal held that plaintiffs had failed to prove
that Bancolombia and its senior managers committed any fraudulent operations or
fraudulent representations regarding the above-mentioned agreement, and denied
any moral damages in favor of the plaintiffs.
Bancolombia is currently studying this ruling together with its attorneys, in
order to analyze the need to request further clarifications and, if necessary,
file an appeal.
On the other hand, Mr. Jaime Gilinski filed an action for the cancellation of
the separate award issued by the Arbitration Tribunal and published on March 30,
2006 with respect to a proceeding filed by Bancolombia against him, which
ordered him to pay Bancolombia Ps 63,500 million. That appeal is pending before
the Superior Tribunal of Bogota.
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Contacts
Sergio Restrepo Jaime A. Velasquez Mauricio Botero
Executive VP Financial VP IR Manager
Tel.:(574)5108668 Tel.:(574)5108666 Tel.:(574)5108866