Netia flaunts its zł. 600 million takeover budget

Netia, one of the largest independent telecom operators, is willing to spend zł. 600 million on potential takeovers, with the first to be carried out by 2004. "By the end of the second quarter we had almost $50 million in cash and due to our clear balance we can borrow additional money. Normally a safe ratio of debt to EBITDA amounts to 2:1, which would allow us to raise about zł. 400 million," Netia president, Wojciech Mądalski told the ISB agency. The operator's plans did not surprise the market. "Consolidation is necessary. We need details, which are not available at present. However, the direction is right," said Remigiusz Tarka, a BZ WBK analyst. Netia is the only telecoms company which has fully restructured its debts. According to earlier information in Puls Biznesu, the company was interested in taking over El-Net, belonging to Elektrim Telekomunikacja, and Tel-Energo, part of the National Grid (PSE). Market analysts believe that a 51% stake in Tel-Energo might cost about zł. 400 million. (Puls Biznesu, pp. 1, 7) M.M.