TPSA takeover of Wirtualna Polska likely by month's end

Telecoms operator Telekomunikacja Polska (TPSA) is expected to gain a majori ty stake in Internet portal Wirtualna Polska (WP) by the end of October. Acc ording to press reports, TPSA will acquire 50% plus one share of WP. An anon ymous source quoted by Puls Biznesu says that the transaction is now at the final stage, and is being examined by lawyers. Ryszard Krauze, CEO of Prokom , a major shareholder in WP, told Gazeta Wyborcza that his company will anno unce its final decision about the sale of the stake to TPSA within the next 10 days. Prokom currently owns 40% of WP, which is Poland's second largest I nternet portal. Under the transaction plan, TPSA will buy up an additional s hare offering by WP and also purchase shares from the current shareholders, including Prokom. Analysts estimate the transaction to be worth zl.50 millio n. The agreement also includes a five-year investment plan for WP. Boguslaw Tazbirek, an analyst with PBK AM, believes that the transaction will lead to a rise in the value of WP shares, since having TPSA as a majority investor w ill enhance the portal's standing. (Gazeta Wyborcza, Oct. 20-21, p. 20; Puls Biznesu, p. 7) M.T.K.