Bad relations could force Cegetel share sale by BT

NEWS "The behaviour of BT over the last few months is not very compatible with the position of a long-term constructive partner of Cegetel," said Messier. BT currently holds 26 per cent of French telco while Vivendi owns 44 per cent. Tension between the two companies arose after Vivendi joined forces with BT's rival Vodafone to create an internet portal called Vizzavi. BT claimed the portal contravened the Cegetel shareholders' agreement. After several failed attempts to resolve the problem, Vivendi and BT submitted the case to court for arbitration. However, the court dismissed BT's complaint on Friday stating that the telco had not violated duties of cooperation, good faith and loyalty and that Vivendi could continue to market Vizzavi. Vivendi's intention now, Messier said, is to clarify with BT whether it wants to continue the partnership. The long-term prospects of Cegetel would be better if BT did stay, he claimed. A BT spokesman refused to comment, claiming it was speculation. He said: "Nothing has been clarified and we are not allowed to talk about the court case. Vivendi has, but it has not mentioned a few major points of the ruling. There are no specific talks between BT and Cegetel but nothing has been ruled out."