Vivendi heads for victory in struggle for control of PTC

Telecom and power group Elektrim is close to accepting the latest bid from French multimedia giant Vivendi for its prized telecom assets. According to an anonymous Elektrim insider quoted yesterday by the Financial Times (FT), the deal, if approved, will see Vivendi take control of Elektrim Telekomunikacja (ET) after $480 million in debt is shifted from Elektrim's balance sheet to that of ET. In exchange, Vivendi will receive 2% of shares in ET, increasing its holding to 51%. Vivendi's primary interest is Eastern Europe's biggest mobile telecom operator, PTC, in which ET holds a 51% stake. Clinching the deal would represent a major victory for Vivendi in its long-running battle with Deutsche Telekom, owner of 49% of PTC, which has offered Elektrim $400 million for the additional stake it needs to take control of the operator. According to the Elektrim source quoted by the FT, "The board is leaning towards the offer because it is better than Deutsche Telekom's." The Elektrim supervisory board will make a recommendation on the deal on Thursday, two days before a general shareholders meeting. (Puls Biznesu, p. 4, Gazeta Wyborcza, p. 22, Reuters) M.K.