Enterprise Investors to increase stake in Netia holdings

Daily newspaper, Parkiet, has learned that Enterprise Investors (EI) private equity fund will increase its stake in domestic alternative telecom operator Netia Holdings, after spending $8 million to buy close to 7% of Netia's shares and warrants. The fund will request a seat on Netia's board, after assembling a coalition of pension funds and investment banks, holding a 20% stake in the company. Some analysts believe that EI's participation in Netia's restructuring may signal a consolidation of the highly fragmented alternative fixed-line domestic market. Analysts also believe that a successful consolidation would leave Netia in a good position to challenge leading domestic fixed telecom operator, Telekomunikacja Polska. "$8 million will not exhaust our investment potential," said EI managing partner Jacek Siwicki. EI manages over $700 million in assets. (Parkiet, p. 1) J.K