Vivendi, Deutsche Telekom resolve conflict in Poland

15th December 2010, Comments 0 comments

French media group Vivendi and Germany's Deutsche Telekom said Wednesday they had resolved a decade-old conflict in Poland, with Vivendi dropping its claims to Polish mobile operator PTC in exchange for 1.25 billion euros.

"With the application of this agreement, Vivendi will receive about 1.25 billion euros (1.66 billion dollars) and will renounce all its rights to PTC shares," the French group said in a statement.

"Deutsche Telekom will have 100 percent ownership of PTC."

The accord will require the completion of several legal steps in Poland that could be completed in the first quarter of 2011, Vivendi said.

The dispute dated from 1999 when Vivendi invested 1.8 billion euros in PTC through its subsidiary ET/Telco, a joint venture with Polish conglomerate Elektrim.

The action by Vivendi was contested by Deutsche Telekom, which held a 49 percent stake in PTC.

The German company then joined forces with Elektrim against Vivendi and took de facto control of PTC thanks to a court ruling that Vivendi challenged.

© 2010 AFP

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