BRE seeks to consolidate Elektrim shares prior to sell-off

BRE Bank said it intended to buy 49% of Elektrim Telekomunikacja (ET). The Elektrim-Vivendi joint venture controls PTC, Eastern Europe's leading mobile phone company. The deal is worth between euro 350 million and euro 700 million. While a formal offer has not yet been made, BRE has created a consortium with Dutch-based investment fund Eastbridge, which is already seeking to buy another 49% of ET shares with Citigroup. Eastbridge hopes to consolidate the shares and sell them to a third party. "We believe that in 2004 Poland will join the EU and telecoms shares will be valued differ ently," said BRE Chief Executive Wojciech Kostrzewa. BRE will probably sell the shares to Deutsche Telekom (DT), who already holds a 49% stake in PTC and is currently involved in a legal conflict with Vivendi. (Puls Biznesu, p. 1, 4; Reuters) M.K.