T-Mobile Sues Poland's Elektrim for US$5.8 Billion

Deutsche Telekom's mobile subsidiary, T-Mobile has filed a lawsuit against Poland's Elektrim for US$5.8 billion - reports Bloomberg News, citing a local news report. According to the report, Deutsche Telekom claims it is losing money in the battle with Elektrim and French Vivendi for control over Polish mobile phone company Polska Telefonia Cyfrowa (PTC).

Vivendi and Deutsche Telekom have been battling over the ownership of PTC for seven years, filing several suits in Austria and Poland.

In June 2006, Elektrim said Deutsche Telekom has exercised a controversial call option on Polska Telefonia Cyfrowa, citing a partial ruling of the Arbitration Court in Vienna that gives the German telecoms giant 97% of PTC.

Before the court's decision, Elektrim held a 48% stake in PTC while Deutsche Telekom had 49%.

Later though, Vivendi filed a complaint in a U.S. federal court against Deutsche Telekom unit T-Mobile, under the Racketeer Influenced and Corrupt Organizations Act, or RICO. The lawsuit is seeking US$2.5 billion from T-Mobile.

Posted to the site on 3rd January 2008