Silver linings

The telecom company raised zł.7.5 million from the issue and stated in its prospectus that it would invest all the new funds. Out of this zł.1 million was to be spent on extending its network and zł.1.7 million on equipment, provided the company signed a deal with TP SA. However, when the agreement fell through, Mediatel signed a deal with Energis Polska to use their infrastructure. Consequently Mediatel saved several million złoty and its shareholders have ordered the management to buy back up to 34,000 shares. The firm's new investment aims are expanding the infrastructure in relation to the Energis network, extending and modernizing the main exchange in Warsaw, conducting an advertising campaign and launching pre-paid services. Mediatel's president Wojciech Gawęda said the company is currently in talks that may lead to market consolidation but was unwilling to specify details.