Proposition 12.29.3.01B10D72D8CF Fix $\kappa \in \mathbb C^*$ and $K\in \mathbb C$. For $\lambda =m\tau +n\in \Lambda $, the formula
\[ \begin{aligned} \lambda \cdot (z,u,[x],[w])={}& \bigl (z+\lambda ,u+m(K+\kappa \sigma ),\\ & [x_0:b_\lambda (z)x_1],[w_0:b_\lambda (z)w_1]\bigr ) \end{aligned} \]
defines a free and properly discontinuous holomorphic action of $\Lambda $ on $\mathbb C^2\times Q$. The quotient $Z$ is not Stein, and $\sigma $ descends to a holomorphic function on $Z$. If $K\notin \{ 0,\kappa \} $, the fiber
\[ \sigma ^{-1}(-K/\kappa )\simeq \mathbb C\times A^\times \]
is a closed submanifold of $Z$ that is not holomorphically convex. If $K=0$ or $K=\kappa $, the quotient contains a compact elliptic curve. In every case the universal cover of $Z$ is the Stein manifold $\mathbb C^2\times Q$.
Proof.
The action. Multiplying $x_1$ and $w_1$ simultaneously by $b_\lambda (z)$ multiplies $\Delta $ and $x_1w_0$ by the same factor, so $\sigma $ is invariant. This invariance and the cocycle identity for $b$ give the group law, including the additivity of the integer $m$ in the $u$-coordinate. Translation in the $z$-coordinate makes the action free and properly discontinuous: only finitely many lattice translates of the projection of one compact set meet another fixed compact set. Hence the quotient $Z$ is a complex manifold, and $\sigma $ descends to a holomorphic function on $Z$.
The fiber of $\sigma $. Set $a=-K/\kappa $. If $a\notin \{ 0,-1\} $, every point of $\{ \sigma =a\} \subset Q$ has $x_0x_1\ne 0$, since $\sigma =0$ where $x_1=0$ and $\sigma =-1$ where $x_0=0$. In the chart
\[ (t,y)\longmapsto ([1:t],[y:ty+1]), \]
we have $\Delta =1$, and the equation $\sigma =a$ becomes $ty=a$. Hence this fiber of $\sigma $ on $Q$ is $\mathbb C^*$, with parameter $t$, and the group action on its preimage is
\[ \lambda \cdot (z,u,t)=(z+\lambda ,u,b_\lambda (z)t). \]
This gives the asserted biholomorphism with $\mathbb C\times A^\times $. The submanifold $\{ u=0\} $ of this fiber is closed in the fiber, and therefore closed in $Z$; under fiberwise inversion it is $B^\times $, with $B=A^*$ as in lemma 12.29.1. Let $K_ r$ be the compact circle bundle of that lemma. Every holomorphic function on $Z$ restricts to a holomorphic function on $B^\times $, so the hull of $K_ r$ in $Z$ contains the same sequence with fiber norms tending to zero. This sequence has no convergent subsequence in the closed submanifold, and hence none in $Z$. Thus neither the fiber nor $Z$ is holomorphically convex.
The exceptional parameters. For $K=0$, take $q_+=([1:0],[0:1])$, where $\sigma =0$. The invariant submanifold $\{ u=0,\ q=q_+\} $ descends to a copy of $E$. For $K=\kappa $, use $q_-=([0:1],[1:0])$, where $\sigma =-1$, with the same conclusion. Every holomorphic function on $Z$ is constant on this compact curve by the maximum modulus principle, so $Z$ is not holomorphically separable, and again not Stein.
The universal cover. The map
\[ Q\longrightarrow \{ (s,c,d)\in \mathbb C^3:cd=s(s-1)\} , \qquad ([x],[w])\longmapsto \left(\frac{x_0w_1}{\Delta },\frac{x_0w_0}{\Delta },\frac{x_1w_1}{\Delta }\right) \]
is an isomorphism. Its inverse recovers $[x]$ and $[w]$ as the column space and the row space of the rank-one matrix
\[ \begin{pmatrix} c
& s
\\ s-1
& d
\end{pmatrix}. \]
This matrix never vanishes, and the hypersurface is smooth: simultaneous vanishing of the three partial derivatives of $cd-s(s-1)$ would give $c=d=0$ and $s=1/2$, contradicting its equation. Thus $Q$ is an affine variety and hence Stein. Projection to $[x]\in \mathbb P^1$ makes $Q$ a locally trivial bundle of affine lines. The chart above and the chart over $\{ x_1\ne 0\} $, given by $(v,y_\infty )\mapsto ([v:1],[vy_\infty +1:y_\infty ])$, are related by
\[ v=1/t,\qquad y_\infty =-t^2y-t. \]
Since the fibers are contractible, $\pi _1(Q)=\pi _1(\mathbb P^1)=0$. Therefore $\mathbb C^2\times Q$ is simply connected and Stein, and it is the universal cover of $Z$.
$\square$
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