Telefonia Lokalna reportedly interested in Netia takeover

Telefonia Lokalna (TL), the fixed line telecoms operator owned by copper giant KGHM, is reported to be interested in taking over the assets and customers of rival independent telecoms operator, Netia. Telia of Sweden, which owns a 49.9% stake in Netia, is seeking a potential investor to take over the ailing operation. Parkiet quotes Marian Krzeminski, until Tuesday president of KGHM, as saying that talks were held with Telia during his term in office. "This is a sensible alternative in the face of an uncertain future," he said. Taking over Netia's assets and customers would increase TL's customer base to 600,000, but would also require heavy investment. Flawiusz Pawluk, an analyst with CA IB Securities, is skeptical, insisting it would be impossible for KGHM to manage TL's zl.1.1 billion debt as well as the costs associated with taking over Netia's assets and customers. The new TL president, Katarzyna Muszkat, has said she does not intend to close down TL's operations, but believes the company is in need of restructuring. (Parkiet, p. 1; Prawo i Gospodarka, p. 5) M.T.K.