Netia to dissolve its subsidiaries into parent company

Netia's extraordinary shareholders meeting decided on Thursday that the telecoms operator will merge its 19 subsidiaries with the parent company. The consolidation process should be concluded in January 2004, and according to management estimates, the operation should lower operating costs by zł. 2-3 million annually. Despite the savings, the consolidation will not directly affect Netia operating results, as the company has always only posted consolidated results. It is also unknown whether the decision will affect the level of employment in the subsidiaries, but according to previous announcements, it is likely that 300 jobs will go by the end of Q1 2004. Benita Mikołajewicz, an analyst with ING Securities in London, believes that the consolidation process should allow the concern to increase its operating margin by 1-2%. (Parkiet, p. 3) M.M.