The fight over PTC goes to Paris
The struggle for control of PTC, Poland's largest mobile operator, has taken on an international flavor, as Vivendi Universal - formerly in control of the operator - filed suit in a Paris court against Deutsche Telekom, which is now looking to gain a controlling stake in the firm.
The suit seeks damages of EUR 2.2 (zł.9.26) billion for lost value in its investments in Poland. Vivendi claims the German telecom "without notice and proper cause" terminated negotiations related to a sale of a 51-percent holding in PTC in September 2004. "Vivendi Universal considers this sudden withdrawal to have been motivated by Deutsche Telekom's wish to appropriate the shares of PTC at the lowest possible cost using methods which Vivendi regards as unlawful," the company said.
In December, a Vienna court ruled that Vivendi had no right to the PTC shares it had claimed it owned through a venture with industrial conglomerate Elektrim. That left Deutsche Telekom open to negotiate solely with Elektrim for the controlling stake, something Vivendi (which had obtained the majority stake as an Elektrim creditor) was dead-set against.
The conflict caused a media storm in March, when the two companies supported rival management boards, each claiming control of the company. The German-backed group finally won out, but whether PTC can operate normally while its ownership continues to come into question is unclear.
"As for now this conflict has a history of some five to seven years. Until now there was no harm to the company because of shareholder disputes and we hope it will stay this way," says Witold Pasek, spokesman for PTC's management board, adding: "We are working hard to keep the company far away from the conflict."
In another salvo fired at the current PTC management, former board members Ryszard Pospieszyński and Jonathan Eastick published a letter addressed to employees of the firm in two prominent Polish dailies on the same day the suit in Paris was filed. The letter called into question the legality of PTC's employment contracts since the new management took over, warning workers that their jobs could be in jeopardy, something which Pasek rejects.
"We are trying to persuade people working here with the company that there is no doubt from a legal point of view about their employment, their salaries, or their promotions," he says.
The suit seeks damages of EUR 2.2 (zł.9.26) billion for lost value in its investments in Poland. Vivendi claims the German telecom "without notice and proper cause" terminated negotiations related to a sale of a 51-percent holding in PTC in September 2004. "Vivendi Universal considers this sudden withdrawal to have been motivated by Deutsche Telekom's wish to appropriate the shares of PTC at the lowest possible cost using methods which Vivendi regards as unlawful," the company said.
In December, a Vienna court ruled that Vivendi had no right to the PTC shares it had claimed it owned through a venture with industrial conglomerate Elektrim. That left Deutsche Telekom open to negotiate solely with Elektrim for the controlling stake, something Vivendi (which had obtained the majority stake as an Elektrim creditor) was dead-set against.
The conflict caused a media storm in March, when the two companies supported rival management boards, each claiming control of the company. The German-backed group finally won out, but whether PTC can operate normally while its ownership continues to come into question is unclear.
"As for now this conflict has a history of some five to seven years. Until now there was no harm to the company because of shareholder disputes and we hope it will stay this way," says Witold Pasek, spokesman for PTC's management board, adding: "We are working hard to keep the company far away from the conflict."
In another salvo fired at the current PTC management, former board members Ryszard Pospieszyński and Jonathan Eastick published a letter addressed to employees of the firm in two prominent Polish dailies on the same day the suit in Paris was filed. The letter called into question the legality of PTC's employment contracts since the new management took over, warning workers that their jobs could be in jeopardy, something which Pasek rejects.
"We are trying to persuade people working here with the company that there is no doubt from a legal point of view about their employment, their salaries, or their promotions," he says.
