T-Mobile parent Deutsche Telekom has acquired 100 percent control of Polish mobile operator Polska Telefonia Cyfrowa (PTC), bringing to an end a five year legal battle with the operator’s former shareholders over ownership of the firm. Deutsche Telekom announced today that it has reached agreement with French rival Vivendi, the Polish company Elektrim and creditors of Elektrim (which include the Polish state) to settle the issue. Deutsche Telekom orignally held 49 percent of the shares in PTC, and in 2005 attempted to exercise a call option for a further 48 percent (increasing its stake to 97 percent) – a move that was contested by the other shareholders. The German firm paid EUR700 million for the 48 percent stake in 2006 and will now pay a further EUR1.4 billion. Including legal costs and the price of acquiring an additional 3 percent share (to give it 100 percent ownership), the final price tag comes in at EUR2.1 billion. The agreement will settle all legal disputes between the three parties before various courts and arbitral tribunals – some of which have lasted for years.

“The absolute legal certainty that is now recognised by all parties is a clear message regarding PTC’s strategic development and paves the way for the future”, said Deutsche Telekom CFO Timotheus Höttges (pictured), adding, “We have untangled the knot.” According to Wireless Intelligence data, PTC is Poland’s third-largest mobile operator with 13.3 million connections at the end of the third quarter. It trails market-leader Orange (14.2 million) and second-placed Polkomtel (13.7 million). In the first nine months of 2010, PTC achieved an EBITDA margin of 37 percent, which Deutsche Telekom claimed was “high compared with its Polish peers.”