Deutsche Telekom, the German telecoms giant, said it has offered 1bn euros (�690m; $1.1bn) to win control of the Polish mobile operator PTC.

The deal would be Deutsche Telekom's first major acquisition in two years.

The German firm is offering to buy the 51% of PTC it does not already own from the Polish utility Elektrim and French group Vivendi Universal. It said the two firms had invited Deutsche Telekom to make the offer.

The sale would end a long-running battle for control of PTC, a leading player in the East European mobile market.

Bad habits?

Deutsche Telekom has spent the past two years paying down its vast debt pile.

What could give investors a headache is that this could turn out to be a return to old habits Christian Doppstadt, WestAM

Chief financial officer Karl-Gerhard Eick said the company was still on track to reach its target of reducing its debt by 50-53bn euros by the end of 2003, and that payment for PTC would be made in the first three months of 2004.

Analysts said the deal looked like good value, but were cautious after Deutsche Telekom's previous acquisitions where it gained a reputation for over-paying.

"I'm a bit ambivalent," said Christian Doppstadt, a credit fund manager at WestAM.

"If you look at the valuation it looks like a good deal........Still, what could give investors a headache is that this could turn out to be a return to old habits."

Other analysts said the purchase would give Deutsche Telekom control of a key group in a fast-developing market.

"It certainly fits with their strategy - that's a fast-growing market and the company is profitable," said Heike Pauls, a telecoms analyst at the brokerage Chevreux.