KGHM, Elektrim to merge local telecoms before DT enters

According to unofficial sources, KGHM and Elektrim, two major players on the local telecoms market, have signed a letter of intent regarding a merger of their fixed-line telecom subsidiaries, Telefonia Lokalna and El-Net. Earlier this week, Elektrim signed a letter of intent to sell a 51% stake in its fixed-line telecoms and data transmission firms to Deutsche Telekom (DT) by the end of February 2001. It is likely that Elektrim would like to close its negotiations with KGHM before the deal with DT goes through. The German giant would then acquire a major slice of the Polish local telecoms market in one take. The merger would be a first step in the long-awaited consolidation of the local market. The new company would hold licenses for 13 out of the 49 former voivodships, including the Warsaw region. A company resulting from the merger of Telefonia Lokalna and El-Net would have more than 140,000 active customers. (Puls Biznesu, p.4) P.J.