Elektrim deal this week
By : Roseanne Gerin
Polish telecom and energy firm Elektrim (http://www.elektrim.pl/english/prasa_infpras_2001_07_31.htm) and France's Vivendi Universal (http://www.vivendi.com) are expected to finalize a crucial deal this week giving the French media and utilities group control over the Polish firm's telecom and Internet assets, according to a source.
The two companies scrapped a July 30 deadline for the final closing of the agreement due to "the complicated nature of the transaction," according to a statement issued by Elektrim last week. The financially strapped Polish firm inked an agreement in late June to sell Vivendi its telecom and Internet assets for E589 million in cash and loans. Under the deal, the assets will be transferred to Elektrim's telecom unit, Elektrim Telekomunikacja (ET), of which Vivendi will hold 51%. Vivendi will also control the country's largest mobile operator, Polska Telefonia Cyfrowa (PTC), in which ET will be the majority shareholder once the deal is completed.
Despite missing the transaction's July 30 deadline, the source, who insisted on anonymity, said last Wednesday two days after the cut-off date that there were no problems with the deal and that the two companies would complete their talks within five to seven days. Spokesmen at Elektrim and Vivendi would not confirm that the two companies would seal the deal this week.
One local news report last week said Elektrim and Vivendi were divided over which firm's supervisory board would have more influence in ET and PTC. Elektrim Spokeswoman Ewa Bojar called the report speculative and declined to comment on why the parties did not settle their agreement, except that it was "impossible" to meet the deadline because "it's a big, complicated deal." She added that there were no problems and that "most parties want to sign the agreement."
Alain Delrieu, a Vivendi spokesman, refused to comment.
