Television takeover

The first signs of the sale of cable-TV provider Aster began to appear in early autumn. Internet forums started to buzz with gossip on the possible upcoming transaction, as everyone had their own theory as to who was going to buy out Aster. The smart money was on UPC, the leader in Poland's cable-TV market.

The riddle was solved in the second week of December: Aster sold for zł.1.6 billion, to Mid Europe Partners, the investment fund which had sold its shares in Aster a year ago. Astonished analysts and competitors could only watch as the hunted became the hunter, and not only did Aster announce that it would remain independent, but also that it is eyeing opponents for an eventual buyout.

"I will not confirm nor deny the rumor of Aster buying someone in the future," Janusz Arciszewski, Aster's CEO says. "The problem is, everyone would like to consolidate the market and no one is willing to sell besides very small firms, but these are not in our interest."

Aster's high sale price has some merit. With 365,000 customers, 70,000 internet subscribers, 13,000 digital phone users and revenues in 2004 of zł.240 million, the company's prospects must have been considered at least encouraging. Moreover, the average Aster customer generates at least twice as much profit as the competition's.