Elektrim and DT have one month to agree on terms to subsidiaries sale

Elektrim has exactly one month to finalize its negotiations with Deutsche Telekom (DT) regarding the Germans' purchase of strategic stakes in six of its subsidiaries, fixed-line operators and data transmission companies - deals together worth an estimated $180 million. Analysts say however that the final purchase conditions could vary greatly from those established in the original letter of intent agreed to by the two companies for the sale of Elektrim's holdings. With the signing of the preliminary agreement, industry players and insiders had interpreted this move as DT's imminent removal of French Vivendi from Elektrim's strategic partner position. It is said unofficially however that Vivendi isn't interested in selling its 49% stake in Elektrim Telekomunikacja. As this mixed ownership structure could present a potential conflict of interests and make calculating revenue and settling cost accounts more complicated, it is widely thought that this would have a major impact on the transaction. (Parkiet, pp.1,2) P.J.