Treasury Min. ringing with joy over sale of TPSA stake to France Telecom

Details of the deal between the Treasury MInistry and the consortium of France Telecom and Kulczyk Holding reveal the consortium will be able to buy an additional 10% stake in Telekomunikaja Polska S.A. (TPSA) from the Treasury for zl. 40 per share and an additional 6% stake through a public offering to be held by the end of September 2001. The Treasury struck a deal to purchase a 35% stake for $4.3 billion earlier this week. "The privatization deal for TPSA is very good, as it specifies when the next block of the company's shares will be up for sale and the sums involved," said deputy Treasury Ministry Alicja Kornasiewicz. According to the deal the management board of TPSA will consist of two members appointed by France Telecom, two by the Treasury and the president will be chosen by both. However, after the deal for the additional stakes is finally concluded the number of shares will decide the board's composition. France Telecom has also pledged to invest zl. 27 billion in the company by 2007, zl. 20 billion of that by 2005. Kornasiewicz emphasized the sum does not include the money needed to purchase a license for the third generation mobile phone system (UMTS). (Rzeczpospolita, page B1) P.S.