France Telecom, Kulczyk to be TPSA strategic investor

The Treasury Ministry decided to grant exclusive negotiating rights for up to a 35% stake yesterday for Telekomunikacja Polska (TPSA) to the consortium of France Telecom (FT) and Kulczyk Holding. "The French offer was better both because of the price and investment pledge," said Treasury Minister Emil Wasacz yesterday. The other bidder, Telecom Italia, offered about $400 million less than the French. FT offered about zl. 38 per TPSA share. Both sides now have six weeks to reach a final agreement. "Among the most important issues are the employees social package, restructuring plans and plans about future development of TPSA", said analysts from a foreign bank. The toughest issue to be discussed will be the layoffs. TPSA laid-off 3,000 people during last two years, but it should reduce employment by 30,000 from a total of 70,000. "These estimates are true only if we stopped developing," said TPSA president Pawel Rzepka at the beginning of the year. TPSA hopes the alliance will help it to conquer foreign markets and will not only focus on defending the domestic one. (Puls Biznesu, page 1, 2-5, Prawo i Gospodarka, page 1, 11) M.M.