Vivendi claims victory in battle with Deutsche Telekom

Power and telecoms conglomerate Elektrim will sell control of its telecoms assets to Vivendi Universal, in a deal worth euro 589 million, an Elektrim spokeswoman has announced. The agreement marks a victory for the French company in its long-running battle with Deutsche Telekom. According to the conditions of the purchase agreement, Elektrim Telekomunikacja (ET), owner of 49% of mobile phone operator Polska Telefonia Cyfrowa (PTC), will obtain from Elektrim fixed line and Internet companies valued at euro 489 million. PTC is Eastern Europe's largest mobile phone operator. At the same time, Vivendi will buy from Elektrim 2% of ET shares, worth euro 100 million. This, combined with the stake it will acquire in Carcom, another shareholder in PTC, will give Vivendi control of PTC. After the transaction, Elektrim will be left with an indirect holding of 24.99% of ET, and will thus lose control of PTC. Analysts point out, however, that the deal with Vivendi will not solve all Elektrim's financial difficulties. (Reuters, Rzeczpospolita, p. B3) P.J.