TPSA Internet deal held up after Wirtualna Polska adopts tougher stance

The agreement under which telecoms giant Telekomunikacja Polska (TPSA) was to buy 50% + 1 share of leading Internet portal Wirtualna Polska (WP) looks likely to be postponed. The deal was supposed to be completed by the end of August, but TPSA's current weakness is believed to have encouraged WP to impose tougher financial conditions. The Telecommunications Regulatory Office (URT) has labeled TPSA as a dominant entity on the market, and a proposal to break up the telecoms giant has been put forward by politicians. These considerations have undermined TPSA's negotiating position with WP. Previously TPSA had been considered the best investor for the portal, placing it in a position to dictate tough conditions. The deadline for signing an agreement has already been put back once. TPSA originally announced that a deal was to be finalized at the end of June or the beginning of July. (Puls Biznesu, p. 8) M.T.