TPSA expands on Internet with Wirtualna Polska bid

Leading telecom operator Telekomunikacja Polska SA (TPSA) has announced plans to take over the country's number two Internet portal, Wirtualna Polska (WP). In a statement issued yesterday, TPSA said that it would acquire a 50% plus one share stake in WP by buying newly issued and existing shares, but gave no further financial details. A TPSA spokesman did, however, reveal that the telecom giant is ready to spend zl.2 billion this year on investment related to the Internet. TPSA, owner of TP Internet, is already Poland's dominant Internet service provider. According to Artur Zak from the Department of Investor Relations at TPSA, with the completion of the takeover, WP would be merged with the TP Internet-owned portal.pl. He said he expects the deal to be finalized at the beginning of July. Analysts say that strategically the move is a very good one for TPSA. Dorota Ubysz, chief analyst at SG Securities in Warsaw, remarked, "Good content and the ability to keep users on their websites will be crucial for major Internet service providers." (Rzeczpospolita, p. B4, Reuters) A.D.