Vivendi said it ‘strongly challenges’ Deutsche Telekom’s (DT’s) announcement late yesterday that has succeeded in acquiring Elektrim’s 48% stake in Polish mobile operator Polska Telefonia Cyfrowa (PTC), to give it a 97% holding. ‘These announcements reflect an agreement between DT and Elektrim that was reached in violation of Polish court rulings,’ Vivendi said in a statement. DT says that the exact price of the deal needs to be set by an arbitration court, but that the move was the result of a call option it had based on an arbitration award issued in Vienna in November 2004. Vivendi has countered that the ‘arbitration award can have no effect in Poland at this time (as Deutsche Telekom) fails to mention that the Warsaw Appeals Court on 16 August 2006 suspended its 29 March decision to recognize the arbitration award.’ It added that the suspension is effective until a decision by the Supreme Court.
The complex legal battle for control of PTC between Vivendi and Deutsche Telekom has been playing out in Polish and international courts since the dispute erupted in 1999.