Elektrim to sell fixed line telecoms to DT for $180 mln

Telecom and energy conglomerate Elektrim signed a letter of intent to sell a 51% stake in its six fixed-line telecom and data transmission firms to Deutsche Telekom (DT) for $180 million and to set up a joint strategy for mobile telecom company Polska Telefonia Cyfrowa (PTC). DT already owns a 45% stake in PTC, which operates the Era GSM network, and the deal announced yesterday will give it a chance to gain majority. "Both sides expressed good will to close the arbitration process going on in Vienna," said Elektrim spokeswoman Ewa Bojar, referring to the protest filed by DT against the transaction which gave Elektrim a majority stake in PTC. Bojar added that Elektrim planned to complete talks with DT at the end of February 2001. The six companies embraced by the letter of intent include Elnet, which holds several local fixed-line licenses, among them the lucrative Warsaw region one. The deal appears to be a sign of cooling relations between Elektrim and French group Vivendi, until now its strategic partner. A year ago Vivendi rescued the Polish telecom from serious financial woes by injecting over $1 billion into their joint-venture and buying a 49% stake in Elektrim's mobile telecom holdings and all of Poland's second largest cable-TV operator Bresnan Partners. (Reuters) M.M.