Netia's hopes still alive in dispute to acquire telecom firm

The arbitrage court of the National Chamber of Commerce (KIG) has decided to freeze the assets of telecom infrastructure management firm Millennium Communications as a result of a lawsuit filed by telecom operator Netia, which wants to take over Millennium. Last August Netia announced it will acquire 100% of Millennium for a price of up to $20.2 million, as a means of strengthening Netia's position among institutional clients, particularly in Warsaw, where it has a local telecom license. However, Millennium shareholder Newman Finance Corporation told Netia in November that they are backing out of the deal. Netia filed a lawsuit with the arbitrage court, demanding that the agreement from August be fulfilled. The decision to freeze the assets of Millennium is meant to protect Netia's claim, so that Millennium is not sold to any other entity. Millennium provides telecom management systems, as well as project management and telecoms engineering advisory services. In mid-2000 it had 12,862 clients. (Puls Biznesu, p.8) T.J.