Vivendi sues Deutsche Telekom for EUR2.2 billion

18 May 2005

In the latest twist in the increasingly bad-tempered battle for control of Polska Telefonia Cyfrowa (PTC), Vivendi has launched legal proceedings against Deutsche Telekom for ‘wrongful termination of negotiations’ and is claiming EUR2.2 billion in compensation. Vivendi alleges that the German telco used unlawful methods when it broke off talks concerning its purchase of the French group’s stake in the cellco in September 2004. It claims the cessation of talks was motivated by the German company’s wish to appropriate the shares of PTC at the lowest possible cost, even if this meant using underhand methods.

In a separate but related story, Deutsche Telekom claims to be the majority shareholder in PTC after February’s call option to buy Elektrim’s 48% stake in the cellco raised its stake to 97%; Elektrim, however, insists that it still owns its 48% stake.

Poland, Deutsche Telekom (DT), T-Mobile Poland