TPSA shares suffer amid investor concerns of undue government leniency

Shares in telecommunication company TPSA fell nearly 5% and traded at zl. 13 .95, their lowest level since mid-May, on the Warsaw Stock Exchange (WSE) on Friday, after trading at zl. 15.35 in the first half of May. It is believed that investors are worried about government plans of giving several percent of TPSA shares free to state companies in order to increase their capital. T PSA substitute shares (so-called GDRs) also fell on Thursday on the London S tock Exchange. Foreign investors fear an increased supply of TPSA shares fol lowing the transfer of 11 million shares to the Industrial Development Agenc y (ARP) and 14 million to BGZ bank. After a meeting of BGZ shareholders on T hursday, bank president Michal Machlejd confirmed that the bank intends to s ell the shares it received from the Treasury, but added that the transaction would not influence the price of shares as they will be sold outside main tr ading. (Gazeta Wyborcza, May 25-26, p. 30) K.S.