Deutsche Telekom implements Vienna arbitration - Exercise of call option for transfer of PTC shares from Elektrim - Legal certainty due to arbitration in Vienna
Deutsche Telekom AG exercised the call option for acquiring shares owned by Elektrim in the leading Polish mobile provider Polska Telefonia Cyfrowa Sp.z o.o. (PTC) in accordance with the Vienna arbitral award. This move brings PTC an important step closer to the urgently required clarification of corporate responsibility in the company.
In its award of December of the previous year, the Arbitration Tribunal in Vienna had granted to a very large extent the motions of T-Mobile Deutschland, which has a 49 percent stake in PTC. It had found that the transfer of shares from Elektrim S.A. to Elektrim Telekomunikacja, in which the French company Vivendi Universal has a considerable shareholding, was null and void and that Elektrim S.A. had remained the continuous holder of shares in PTC from the outset. Furthermore, it was decided that according to PTC's shareholders' agreement, T-Mobile would have a call option to these shares against Elektrim under certain conditions. In the face of vigorous obstruction by Elektrim Telekomunikacja, which enjoys the backing of the French company Vivendi Universal, and despite support from T-Mobile , Elektrim has not succeeded in preventing these conditions.
The European Commission gave Deutsche Telekom clearance under competition law to acquire a majority holding in PTC as early as October 29, 2004.