PTC deal pole-axed?

14 Feb 2005

Negotiations between Elektrim and French media group Vivendi Universal over the sale of Polish mobile company Polska Telefonia Cyfrowa (PTC), which owns and operates the Era GSM network, are reported to have collapsed following deadlock between the two sides. Elektrim and Vivendi have been discussing ways to resolve the PTC situation and had reportedly agreed a new deal in which the French company would pay PLZ2.6 billion in exchange for Elektrim’s total withdrawal from PTC. As it stands Elektrim Telekomunikacja (ET) holds 47.99% of PTC with the remainder owned by Deutsche Telekom (49%) and other Polish companies (3.01%). However, Vivendi controls 51% of ET while Elektrim holds the remaining 49%.

Earlier this month Vivendi Universal said it was to appeal against a recent Warsaw court ruling that upheld the decision made by an Austrian court in November to transfer all of Elektrim Telekomunikacja’s (ET’s) shares in Poland’s wireless leader Polska Telefonia Cyfrowa (PTC) back to Elektrim. At the time Vivendi insisted that it has the right to acquire the remaining stake in ET from Elektrim and claimed that the original Vienna court judgement was unenforceable, citing the reason that Austrian law does not have jurisdiction over Poland.

Poland, T-Mobile Poland