Parkiet: Telecom Italia favorite for strategic TPSA stake

According to the Parkiet daily, Telecom Italia is viewed by analysts as the favorite to acquire a 25%-35% stake in Telekomunikacja Polska S.A. (TPSA) from the Treasury Ministry and eventually gain control of the Polish telecom. Telecom Italia's competitor for the stake is France Telecom. The two companies should place their final bids by the end of the week. Telecom Italia is seen to have better political backing, which is a key matter in such transactions. "Privatization of large state-owned enterprises is 90% politics and only 10% other factors," says Jan Sudol, telecom analyst with Donaldson, Lufkin&Jenrette. According to rumors, political factors are the reason why France Telecom has placed a bid together with Polish company Kulczyk Holding. (Parkiet, page 1) T.J.