DT wins ten-year battle for PTC
Deutsche Telekom has taken control of Polska Telefonia Cyfrowa (PTC), Poland’s third-largest cellco, ending a decade-long dispute with French media group Vivendi.
The German incumbent will shell out an additional €1.4 billion for the 51% of the cellco owned by Polish firm Elektrim and Vivendi, taking its total outlay to €2.1 billion including an initial €7 million payment made to Elektrim in 2006.
A deal announced today also brings the curtain down on various legal battles relating to Deutsche Telekom’s bid to acquire full control of PTC, which was hotly disputed by Vivendi.
The French firm had argued that Deutsche Telekom was not entitled to exercise a share option covering Elektrim’s 48% share in 2005, which would have boosted the German telco’s PTC holding to 97%.
Vivendi was the majority owner of two holding firms that held the remaining 3% of PTC. Today’s deal also covers the purchase of those companies by Deutsche Telekom.
"We have untangled the knot,” Deutsche Telekom’s CFO Timotheus Höttges states "The absolute legal certainty that is now recognized by all parties is a clear message regarding PTC’s strategic development."
A Vivendi statement revealed the firm will receive €1.2 billion of the total payment, and that Elektrim will exit bankruptcy.
Poland’s treasury told Bloomberg that Elektrim will pay it 389.9 million zloty (€97.5 million) to pay off its debts.