PTC sale blocked by Elektrim

5 Sep 2003

Polish power utility Elektrim has blocked the sale of its 51% stake in its subsidiary Polska Telefonia Cyfrowa (PTC) to Deutsche Telekom, by withdrawing a representative from the board of the joint venture with Vivendi that controls the cellco. Elektrim hopes that the move will force Deutsche Telekom to raise its EUR1.08 billion bid, although other options for the German telco include extending its bid deadline or abandoning the purchase altogether. Under the current offer Elektrim would be left with around EUR200 million-EUR250 million after clearing its debts, leaving it short of funds to pay around EUR500 million owed to bondholders. Elektrim’s move follows a legal dispute between itself and Vivendi surrounding the offer made by Deutsche Telekom; Vivendi had supported the buyout while Elektrim expressed reservations.