Deutsche Telekom to pay EUR600 million for Elektrim’s PTC stake

5 Oct 2006

Deutsche Telekom (DT) yesterday confirmed that it will pay in the region of EUR600 million (USD762.5 million) to Elektrim to buy out the firm’s stake in Polish wireless operator Polska Telefonia Cyfrowa (PTC), raising its stake in the operator to 97%. The move comes just a week after Elektrim filed for bankruptcy and a day after it obtained a ruling from the Vienna Arbitration Court determining that DT should pay no less than the current book value of PTC shares, estimated by the court to be EUR600 million. A DT spokesman added that the Viennese court will specify the exact amount to be paid at a later date.

French media and telecoms conglomerate Vivendi had claimed the right to buy Elektrim’s PTC stake, and founded a joint venture with Elektrim to try to incorporate the latter’s PTC share, but the Viennese court ruled that the move was not legal. Late last month Vivendi made an offer for DT’s original 49% in PTC, which DT dismissed.

Poland, Deutsche Telekom (DT), Elektrim Telekomunikacja (ET), T-Mobile Poland (Polska Telefonia Cyfrowa, PTC)