Troubled UPC at center of speculation over potential change of ownership

Poland's largest cable television service provider UPC Telewizja Kablowa (UPC TK) could soon change hands. According to unofficial information from Puls Biznesu, financially troubled United Pan-European Communication, owner of UPC TK, is considering selling its Polish assets. Rumors are circulating that ITI, owner of television channel TVN, is seriously interested in purchasing the stake because the company is unable to reach an agreement with operators over the inclusion of news channel TVN 24 in cable packages. If ITI were to take over UPC TK, the company would have access to half of the Polish cable market. According to Puls Biznesu's informer, the stake in UPC TK has also attracted private equity funds including Enterprise Investors and Advent. UPC TK, which has over one million subscribers, has debts of about $250 million which any future investor would have to cover. This factor also lowers the price a potential investor would be willing to pay for the ailing operator. UPC declined to comment on the sale of the Polish cable operator. (Puls Biznesu, p. 4) A.Z.