TPSA failed to analyze the small print in WP contract

Puls Biznesu has learned that TPSA will have to pay zł. 560 million in 2005 for the remaining 50% stake in Internet portal Wirtualna Polska (WP), as this was included in a secret agreement signed by the parties at the end of 2001. According to the unrevealed part of the contract, if the portal managed to record key named results, then the valuation of WP would increase to as much as zł. 1.12 billion. TPSA is not willing to pay the fivefold sum that it paid for its 50% stake back in 2001. If they did, they would be paying a similar amount to that paid by ITI holding for the largest domestic Internet portal onet.pl. TPSA deputy president Bertrand Le Guern announced that his company would be willing to pay before 2005 for the stake, but only if the amount is substantially lower than the zł. 560 million demanded. However, minority WP shareholders would have to agree to this, which is rather unlikely. (Puls Biznesu, pp. 1, 4) M.M.