New Elektrim conglomerate to focus on telecom and net

Energy and telecom group Elektrim S.A. plans to streamline its operations, focusing on telecommunication and the internet and selling off its other activities. The conglomerate will look for investor approval for this strategy later this year when it will try to issue Global Depositary Receipts (GDRs) on European bourses. However, according to Elektrim president Barbara Lundberg, the company's capital requirements are not very big. "Our financial situation is very good. After the transaction with Vivendi we have regained full credit ability." By the end of this year Elektrim wants to find buyers for its cable manufacturing subsidiary Elektrim Kable, valued at as much as $250 million, as well as stakes in construction companies Mostostal Warszawa and Energomontaz Polnoc. Questions remain regarding Elektrim's energy holdings. "Most investors view the IT sector as having better growth prospects than the energy sector. Therefore it will be our job to skillfully isolate this business from Elektrim," said Lundberg. (Puls Biznesu, page 11) T.J.