TPSA shares fall after ING Barings recommends "sell"

ING Barings has lowered its investment rating for Telekomunikacja Polska (TPSA), valuing the company's shares at just zl.12. In its latest report, released yesterday, ING Barings changed its recommendation for TPSA from "hold" to "sell". According to analysts, the ING Barings report was the reason behind yesterday's near 5% fall in the value of TPSA shares, which closed the day at zl.14.4. "Following disappointing fixed-line revenues in the fourth quarter of 2001 and rising regulatory and financing risks, we now value TPSA at zl.12 per share," the report read. TPSA's cost-cutting efforts have failed to yield the expected results. Benita Mikolajewicz from the London head office of ING Barings commented, "The restructuring of the workforce will not bring the financial benefits we expected, because a large part of the employees will not be made redundant but will be moved to affiliated companies of TPSA." (Prawo i Gospodarka, p. 6; Reuters) P.W.