Swatch Group AG won an arbitration award of 402 million francs ($449 million) from Tiffany & Co., more than the New York-based jeweler earned last year, after the Swiss watchmaker claimed a breach of contract at a joint venture.

Tiffany said it will take a charge of $295 million to $305 million in the fourth quarter for the decision by an arbitration panel in the Netherlands. The charge may reduce earnings by as much as $2.35 a diluted share for the fiscal year ended Jan. 31, relative to the forecast of $3.65 to $3.75 a share given in November, Tiffany said in a statement.

“We were shocked and extremely disappointed by the decision of the arbitral panel,” said Michael Kowalski, Tiffany’s chief executive officer, in Sunday’s statement. He said the panel’s ruling wasn’t supported by the facts or agreements between both sides and that Tiffany is reviewing its options with legal counsel.

Tiffany’s counterclaim was dismissed by the Netherlands Arbitration Institute, said Biel, Switzerland-based Swatch, the biggest maker of Swiss timepieces, in a separate emailed statement.

“This is great news for Swatch,” said Luca Solca, an analyst at Exane BNP Paribas. The amount to be paid is “not immaterial and it clears a question mark on the stock.”

Tiffany shares have risen 58 percent this year, closing at $90.62 on Dec. 20. Swatch shares have risen 26 percent, to 581.50 Swiss francs, in the same period.

Swatch and Tiffany in 2011 became embroiled in a legal battle after the Swiss company alleged the U.S. jeweler blocked development of the business.

Tiffany said it honored its obligations under the terms of the alliance the two companies had begun almost four years earlier, when they agreed to develop and sell watches under the Tiffany brand and share the profits. Swatch said in 2011 that the venture would shut down within two years. (Bloomberg)