TPSA shares soar amid rumors of France Telecom bid

Shares in Telekomunikacja Polska (TPSA) rose by almost 8% on the Warsaw Stock Exchange (WSE) yesterday, amid rumors that France Telecom is proposing to pay zl.24 or zl.25 per share to increase its stake in the telecom giant. The sudden surge in the TPSA share price reflects insider opinion that talks between the Treasury Ministry and France Telecom on the sale of a further 10% stake in TPSA have almost reached a conclusion. According to a report in the Gazeta Wyborcza daily, Treasury Minister Aldona Kamela-Sowinska refused to confirm the rumors. However, she is quoted by Reuters as stating that the Ministry is awaiting written confirmation of the French offer. France Telecom was given the option of buying the additional 10% stake at zl.40 per share as part of the original deal under which it acquired 35% of TPSA, but is believed to have succeeded in bringing the share price down to zl.24 or zl.25. The sale of the 10% stake, along with a second public offering of a further 20% of TPSA, are crucial to the ailing budget, since they are expected to generate an estimated zl.8.5 billion in revenue for the state. (Gazeta Wyborcza, p. 15; Reuters) M.T.K.