Vivendi offer aimed at thwarting Deutsche Telekom

Vivendi yesterday presented a new proposal to the supervisory board of conglomerate Elektrim, aimed at thwarting efforts by Deutsche Telekom to seize control of Poland's leading mobile phone company, Polska Telefonia Cyfrowa (PTC). Vivendi offered to swap its 49% stake in Elektrim Telekomunikacja (ET) for new shares in Elektrim. Should the plan succeed Vivendi, already the largest shareholder in Elektrim, would gain near control of the company and of its interest in the lucrative PTC. "A 20% premium will be applied to Elektrim's stake in ET, implying that Vivendi will exchange its ET shares for new Elektrim shares issued at a price between zl.49 and zl.55, assuming an equity value for PTC of between euro 4.5 billion and euro 5.0 billion," Vivendi said in a statement. If Vivendi's proposal is accepted, Elektrim would increase its stake in PTC from an indirect 26% to a direct 51%. The Vivendi proposal is an alternative to the Deutsche Telekom offer of $400 million for a 3.45% stake in Elektrim, which would assure DT of a majority interest in PTC. The French company wants its proposal to be voted on at Elektrim's general shareholders' meeting scheduled for June 28th. (Prawo i Gospodarka, p.10; Reuters) A.D.