Vivendi Says Awarded EUR1.9 Billion Judgment Against Elektrim

French media giant Vivendi SA (12777.FR) said Monday an arbitral tribunal under the auspices of the London Court of International Arbitration issued its final award in the dispute between Vivendi and Elektrim, a Polish company controlled by Zygmunt Solorz.

On Feb. 12, the tribunal awarded damages of EUR1.876 billion, plus accrued interest from February 2005, to Vivendi for intentional breaches by Elektrim of the investment agreement entered into in September 2001 regarding their joint venture Elektrim Telekomunikacja Sp. z o.o. (Telco) and their investment in Polska Telefonia Cyfrowa Sp. z o.o. (PTC), Vivendi said.

This final award follows a partial award rendered on last March 19 which declared that "Elektrim breached the basic premise of the (investment agreement) by systematically acting against the interests of Telco in furtherance of its own interests and by refusing to acknowledge Telco's right to the economic benefit of the PTC shares", Vivendi added.

All of Elektrim's counter-claims against Vivendi have been dismissed, the French company said.

Elektrim had received more than EUR1.8 billion from Vivendi to transfer the PTC shares to Telco and protect Telco's economic interests therein.

Vivendi said it is the largest creditor of Elektrim and this final award confirms its claim, of which recognition is requested in Elektrim's bankruptcy.

The confirmation of Telco's ownership rights on the PTC shares is still pending before the Polish courts, the French company added.

Company Web Site; www.vivendi.com