Rumors of Telia withdrawal add to Netia's problems
An attempt by independent telecoms operator Netia to buy back its bonds has
failed, after bondholders teamed up to negotiate a better price. In early
November Netia offered to buy back up to 85% of its euro 850 million of
bonds at 11% to 14% of their face value. However, the offer provoked an
outcry among bondholders, who wanted a higher cash price, an additional
equity component, or both. Netia's difficulties have been compounded by a
report in the Swedish newspaper Dagens Industri, which quotes anonymous
sources as claiming that major shareholder Telia plans to sell its 48% of
Netia stock. Telia's director of investor relations, Tobias Lenner, declined
to say if the report was true. In an interview yesterday with the Polish
Press Agency (PAP), Lenner said, "I cannot confirm this press speculation. I
can only remind you that Telia is participating in talks to find the means
of financing Netia." Netia spokesperson Jolanta Ciesielska said, "We will
not comment on hearsay and unconfirmed information." (Prawo i Gospodarka, p.
10; Reuters) P.W.
