Vivendi puts its money on the table
Jean Bernard Levy, who will become chief executive of Vivendi later this month, says the French company will spend EUR 650 (zł.500) million to end the ongoing legal feud over control of Poland's top mobile operator.
Currently, Vivendi is in discussions with Elektrim, which has a stake in PTC, but will only communicate with the other major PTC stakeholder, Deutsche Telekom, via the courts. The companies are locked in a bitter dispute over a 48 percent stake of PTC.
Recently, a London court of arbitration issued a temporary decision, which barred Elektrim from executing its rights and selling its shares to Deutsche Telecom before a dispute between Elektrim, and Vivendi is settled.
However, there is no talk of animosity towards Elektrim from Vivendi's end of the line at the moment. "We are ready to help build a solution where we will put more money into Poland, and we will have 51 percent of PTC ... any solution would entail a cash injection [for Elektrim] of around EUR 650 million," Levy told journalists in Warsaw.
"There is a permanent channel of communication with Elektrim. The doors are open, we are willing to talk, and indeed there is communication between the two sides," he added.
Elektrim is in a difficult financial situation, and needs to pay off about EUR 440 (zł.1,800) worth of bonds. The Vivendi injection would allow it to pay this and invest in its main asset, power generator PAK.
That would give Elektrim the cash it needs to pay off about EUR 440 million worth of bonds, leaving enough left over to invest in its other main asset, power generator PAK.
To date, Vivendi has invested EUR 1.8 (zł.7.4) billion in PTC, through an equity stake in Elektrim Telekomunikacja (ET) - a joint venture with Elektrim - and loans to ET.
Levy said Vivendi estimates the current value of its investment at around EUR 2.2 (zł.9) billion, though it is carried on Vivendi's books at just EUR 380 (zł.1,555) million due to a write-down ordered by an independent auditor at the end of 2002.
Deutsche Telekom owns 49 percent of PTC, and a Warsaw court recently ruled that Elektrim, not ET, is the owner of the disputed 48 percent stake. But Vivendi has challenged that court ruling, saying it was based on an erroneous interpretation of a Vienna arbitration court decision.
Meanwhile, Deutsche Telekom has said it wants to buy the stake from Elektrim and is willing to pay a "fair price" - though it also says it has an option to buy the stake for a fraction of its market value. (Reuters)
Currently, Vivendi is in discussions with Elektrim, which has a stake in PTC, but will only communicate with the other major PTC stakeholder, Deutsche Telekom, via the courts. The companies are locked in a bitter dispute over a 48 percent stake of PTC.
Recently, a London court of arbitration issued a temporary decision, which barred Elektrim from executing its rights and selling its shares to Deutsche Telecom before a dispute between Elektrim, and Vivendi is settled.
However, there is no talk of animosity towards Elektrim from Vivendi's end of the line at the moment. "We are ready to help build a solution where we will put more money into Poland, and we will have 51 percent of PTC ... any solution would entail a cash injection [for Elektrim] of around EUR 650 million," Levy told journalists in Warsaw.
"There is a permanent channel of communication with Elektrim. The doors are open, we are willing to talk, and indeed there is communication between the two sides," he added.
Elektrim is in a difficult financial situation, and needs to pay off about EUR 440 (zł.1,800) worth of bonds. The Vivendi injection would allow it to pay this and invest in its main asset, power generator PAK.
That would give Elektrim the cash it needs to pay off about EUR 440 million worth of bonds, leaving enough left over to invest in its other main asset, power generator PAK.
To date, Vivendi has invested EUR 1.8 (zł.7.4) billion in PTC, through an equity stake in Elektrim Telekomunikacja (ET) - a joint venture with Elektrim - and loans to ET.
Levy said Vivendi estimates the current value of its investment at around EUR 2.2 (zł.9) billion, though it is carried on Vivendi's books at just EUR 380 (zł.1,555) million due to a write-down ordered by an independent auditor at the end of 2002.
Deutsche Telekom owns 49 percent of PTC, and a Warsaw court recently ruled that Elektrim, not ET, is the owner of the disputed 48 percent stake. But Vivendi has challenged that court ruling, saying it was based on an erroneous interpretation of a Vienna arbitration court decision.
Meanwhile, Deutsche Telekom has said it wants to buy the stake from Elektrim and is willing to pay a "fair price" - though it also says it has an option to buy the stake for a fraction of its market value. (Reuters)
