Netia seeks $350 million to fund spending up to 2003

Telecom operator Netia has announced that it will need an additional $350 million to continue its planned business activities through to the year 2003. Speaking at an investors' conference yesterday, deputy finance director of the company, Jacek Owczarek, said, "Netia will seek to gain additional funding in the form of debt and equity, with the support of its main shareholders." He added that further details of the financing plan would be released in the next few weeks. Netia, whose strategic shareholder is Telia of Sweden with a stake of 48%, is already the cause of some anxiety among market analysts because of its debt position. With its burgeoning debt currently standing at zl.3.3 billion, compared to its market value of zl.1.1 billion, they question the company's ability to raise new funding against a background of difficult market conditions. Netia also revealed that on July 1st, it will launch a long distance telephone business, in direct competition to TPSA. Initially, only institutional customers will be able to take advantage of the new service, although it will be made available to other subscribers in August. (Prawo I Gospodarka, p.13; Gazeta Wyborcza, p.19; Reuters) A.D.