Netia discussing bank-backed Telefonia Dialog merger

Netia S.A., Poland's second largest telecoms company plans to go to the bank to finance its earlier planned merger with Telefonia Dialog, the country's third largest fixed-line operator. Netia president Wojciech Mądalski, who helped restructure Netia after its near bankruptcy two years ago, yesterday told Parkiet that Dialog's 100 per cent share owner, KGHM mining group, has decided to hold on to its stake in the local operator for the moment. The state-owned KGHM company, wants zł. 900 million for Dialog, which currently has 42,000 subscribers. Netia hopes KGHM will change its mind in September, allowing the merger to go ahead. (Parkiet, p.3) J.J.