France Telecom submits offer to increase TPSA stake

France Telecom has submitted an offer to increase its stake in telecoms giant Telekomunikacja Polska (TPSA). Announcing that the offer had been received, Karol Milkowski, head of the strategic company department at the Treasury, said, "There is a proposal to increase its stake in TPSA, but I cannot give any details at this time." France Telecom confirmed that it had made a new proposal, along with its Polish partner Kulczyk Holding, but also declined to reveal any further information. Together the two companies already own 35% of TPSA. France Telecom let a costly option to increase its stake by 10% run out last month, and it is not clear how large a stake it is now seeking, nor how much it is prepared to pay. The news gave TPSA shares a slight boost in trading on the Warsaw Stock Exchange (WSE) yesterday, but still they remain at a very low ebb, having lost 49% of their value so far this year. The Treasury had planned to float up to 20% of TPSA this year, but it is unclear if the sale will go ahead, in light of its weak market price. (Reuters)