Elektrim/Deutsche Telekom share dispute reaches Vienna arbitration court

A case pertaining to a 2-year dispute between Elektrim and Deutsche Telekom (DT) will start before a Vienna arbitration court today. The court will try to determine whether Elektrim had broken a contract with other shareholders of Polska Telefonia Cyfrowa (PTC) when in 1999 it purchased 15.8% of Era GSM operator shares. DT is not only suing Elektrim, but also the entities from which Elektrim acquired the stake: Warta, Kulczyk Holding and BRE Bank, which made almost $680 million on the deal. DT is demanding acknowledgement that the transfer of PTC shares to Elektrim was invalid and that Elektrim and Kulczyk Holding in fact violated the partners' agreement. Interrogation of witnesses, whose statements may be crucial to the case, will be conducted between Nov. 5th and 13th. Although Puls Biznesu reports that both sides have equal chances of winning, the consequences of losing the case are much graver for Elektrim. Michal Marczak, an analyst with DI BRE says: "This case is of the highest importance for Elektrim. However, it is hard to foresee their chances for victory." (Puls Biznesu, p. 4) M.T.K.