Treasury certain France Telecom will use TPSA option

Treasury Minister Aldona Kamela-Sowinska is hoping to convince France Telecom (FT) and Kulczyk Holding to increase their stake in national telecom operator Telekomunikacja Polska S.A. by 10% this year, despite FT's earlier declarations that it would not do so. When the two groups jointly acquired 35% of TP SA last year, they received an option to buy an additional 10% for zl.38 per share this year. However, that option no longer appears attractive, as TP SA stocks have dropped to zl.22.2 on the Warsaw Stock Exchange (WSE) and this is probably why FT president said a month ago that the option would not be exercised. The Treasury Minister, keen to meet an ambitious target for privatization revenues, firmly believes that FT will indeed exercise the option, with a meeting between her and FT representatives possible next week. Regardless of what FT does, the Treasury will float at least 14% of its 30% TP SA shares on WSE by the end of this year. (Parkiet, p.1) T.J.