Elektrim and Deutsche Telekom delay big deal, hoping to keep Vivendi in?

Telecom and energy group Elektrim and Deutsche Telekom (DT) pushed back by two months the deadline for finalizing a $180 million agreement giving DT a 51% stake in six Elektrim fixed-line telecom subsidiaries. Elektrim wants to use the time to clear up the complicated ownership structure of its telecom subsidiaries. According to a new plan, reportedly drafted by investment bank Morgan Stanley Dean Witter, all telecom and cable TV holdings would be grouped in one entity, in which Elektrim, Deutsche Telekom and Vivendi would each hold a stake. The latter signed an investment agreement with Elektrim back in 1999 and recently threatened arbitration proceedings against the Polish form for allegedly breaching the terms of that agreement. It is possible that Elektrim and DT have now chosen to work towards a solution that would be satisfactory to all parties, rather than sign a deal themselves and leave Vivendi out in the cold, resulting in a conflict. (Puls Biznesu, p.8) T.J.