KGHM planning expansion in telecommunications sector

Copper concern KGHM Polska Miedz is to acquire a 50% stake in fixed-line telephone operator Telefonia Lokalna (TL), which operates in the Dialog network owned by state-owned power grid Polskie Sieci Energetyczne (PSE). This acquisition means that KGHM will control 100% of the shares of TL. KGHM is also to buy a stake in the international investment-fund AIG Emerging Europe Infrastructure Fund (AIG EEIF) for $25 million. The main shareholders of AIG EEIF, which has its own capital of $1 billion, are the American finance-insurance group AIG, financial group ABN AMRO and Edison Capital, which is part of one of the largest energy partnerships in the world, Edison Int. This investment fund has so far invested $30 million in the development of a mobile-phone network in the Czech Republic, and another $25 million on internet- and cable-television development in Slovenia. This year KGHM is planning to spend about zl. 500 million on its telecommunications' operations. (Rzeczpospolita, page B3) M.M.