Deutsche Telekom decides against $180 million purchase from Elektrim

Deutsche Telekom (DT) has decided not to buy six stationary telecommunication and data transmission companies valued at $180 million, after the letter of intent it had agreed with their owner Elektrim expired. The letter of intent signed by the companies in December 2000 lost its binding force on 30 April. "The letter became invalid because Elektrim is developing new assumptions for its assets' consolidation in the telecom sector," said Ewa Bojar, Elektrim's spokeswoman. She added that Elektrim's board of directors will continue to discuss the issue with DT, but there is no need for further negotiations on the six companies' sale. The board intends to transfer all its telecom assets to Polska Telefonia Cyfrowa, operator of the Era GSM mobile phone network. However, as a result of the parties' failure to prolong the letter of intent and conclude an agreement, Moody's Investors Service lowered Elektrim's rating to B3. (Prawo i Gospodarka, 2-3 May, p. 1, 13, Parkiet, 2-3 May, p. 3) M. S.-C.