Deutsche Telekom says the complaint is without foundation

Vivendi said it wanted compensation for money it had lost on Polish mobile phone company PTC, over which the two firms had fought for control.

The legal action, filed in Paris, accuses Deutsche Telekom of wrongful termination of negotiations to buy out Vivendi and its Polish partner.

The German firm says it can find "no legal ground" for the charge.

Vivendi claims Deutsche Telekom's aim was to take over PTC more cheaply, Vivendi says.

PTC is the biggest mobile phone operator in central Europe, with more than 40 million customers.

Ownership dispute

In August 2003, Deutsche Telekom, which owns 49% of PTC, offered 1bn euros to win control of the company by buying the rest from Vivendi and Polish utility Elektrim.

But just over a year later, the German company called a halt to the negotiations - "without notice and without proper cause", alleges Vivendi.

"Vivendi Universal considers this sudden withdrawal to have been motivated by Deutsche Telekom's wish to appropriate the shares of PTC at the lowest possible cost, using methods which Vivendi regards as unlawful," said a statement on the media group's website.

Vivendi said it was claiming damages "to compensate for the losses it has suffered, and, in particular, for the loss of value in its investment in Poland caused by the behaviour of Deutsche Telekom".

The ownership of the remaining 51% of PTC is currently at the centre of a legal dispute, with Deutsche Telekom saying it had an option to buy Elektrim's stake without reference to Vivendi.