TPSA reaches deal with shareholders on taking control of Wirtualna Polska

Telecoms giant Telekomunikacja Polska (TPSA) has concluded negotiations with shareholders of Wirtualna Polska (WP) on the purchase of 50% plus one share of the Internet portal. According to a market insider, the parties must now prepare a detailed agreement, which is likely to be signed no later than the beginning of October. WP, Poland's oldest and second most visited portal, has been hit hard by the recent crisis in the Internet sector. Serious financial difficulties have forced it to cut staff salaries by between 20% and 30%. Market analysts speculate that news of the agreement will not have a significant impact on the shares of TPSA or Prokom, which owns a 40% stake in WP. According to Puls Biznesu, TPSA may pay less than market analysts anticipated for the WP stake, which had originally been value at $60 million to $200 million. (Puls Biznesu, p. 10) M.T.K.