Telia wants to take part in Netia's proposed stock issue

Sweden-based Telia, the largest shareholder in bankruptcy-threatened domestic telecoms operator Netia, is ready to take part in the company's stock issue of up to 600 million new shares. Telia, which owns approximately 48% of Netia, refused to disclose any details as to the amount of the issue it was interested in. Telia's participation in the issue will occur only on the condition that Telia reach an agreement with Netia's creditors, which in total hold bonds in Netia worth $860 million. A consensus with creditors will be difficult to reach, reports Puls Biznesu. Jonas Bratt, a representative of Telia in Poland, admitted that talks with bondholders have not been easy and that an outcome is difficult to foresee. According to unofficial information in Puls Biznesu, Telia is also attempting to help Netia by other means, and has signed an agreement through its subsidiary, Telia International Carrier, regarding a $10 million lease of the cash-strapped company's network. (Puls Biznesu, p. 7) P.J.