KGHM pulls the plug on talks to sell Telefonia Dialog

According to Puls Biznesu sources copper giant KGHM has withdrawn from negotiations concerning the sale of its telecom company Telefonia Dialog (TD) to the second largest operator Netia. "The decision has not been made yet. It should be expected over the coming months after consultations between the management and the supervisory board," said KGHM spokeswoman Renata Łuczyńska. Furthermore TD cannot hope to reduce its zł.1.4 billion debt by half towards the copper company. According to sources the main reason why KGHM decided not to sell TD was due to the improving results of the operator, which posted a net profit of zł.38 million on revenues of zł.220 million in the first half of the year. The company is doing well in terms of the number of subscribers, presently at 424,000, which is slightly less than the figure for Netia. (Puls Biznesu, pp. 1, 4) M.M.