Elektrim insists telecom sale will go ahead as planned despite market jitters
Acting Chief Executive of Elektrim, Waldemar Siwak, has insisted that the
deal to sell control of its telecoms assets to Vivendi Universal will be
completed as scheduled by the end of July. Speaking in an interview with
Reuters, Siwak described as "unwarranted" market fears over the fate of the
transaction. Referring to yesterday's 8% fall in the price of Elektrim
shares on the Warsaw Stock Exchange (WSE), which saw them at their lowest
level in five years, he said, "If the market is valuing our stock much
lower, then it must be including a significant discount associated with the
closing of the Vivendi transaction. There is no such danger. I am convinced
it will be closed by July 31." The deal with Vivendi will bring Elektrim
$600 million in cash and loans, funding that is crucial for the survival of
the struggling telecoms and power group. (Gazeta Wyborcza, p. 21; Reuters)
P.J.
