Deal with Elektrim held up by Vivendi refusal to accept Internet concern

In spite of press speculation that a deal was imminent, Elektrim yesterday failed to finalize the sale of its telecoms interest Elektrim Telekomunikacja (ET) to French telecommunications giant Vivendi Universal. Elektrim's share price rose 5.5% on the strength of the rumors, and analysts say the deal will still go ahead, by September 15 at the latest. According to an unofficial source quoted by Puls Biznesu, the deal has been held up because Vivendi does not want the Internet part of ET, Elektrim Online, and this will now probably be sold separately. Elektrim Online consists of three Internet companies; eCenter, CT Creative Team, and the portal Poland.com, all of which reportedly have poor growth prospects. Elektrim officials had earlier said that the ET sale, valued at $600 million in cash and loans, would be completed by the end of July, but the two companies have been wrangling over the details of the agreement. (Puls Biznesu, p. 8; Reuters) M.T.