UOKiK prevents Elektrim's sale of cable operation

The Office for Competition and Consumer Protection (UOKiK) yesterday stopped conglomerate Elektrim from selling its cable unit Elektrim Kable (EK). Krakowska Fabryka Kabli (KFK) had wanted to buy a 70% stake in EK, the country's top cable producer, at a cost of over $100 million. But if approved, the sale would have given KFK control of over 80% of the domestic cable market. "Concentration on this market could lead to economically unjustified increases in cable and wiring prices which could in turn up prices for cable buyers, such as TPSA, energy firms or Polish railways," the UOKiK statement read. Spokesman for KFK, Krzysztof Szczesniak, said that the company plans an appeal against the UOKiK decision. Representatives of Elektrim declined to comment. The UOKiK announcement comes as a second blow to Elektrim in recent weeks, after the planned $33 million sale of Port Praski to Pol-Mot Holding fell through. The UOKiK announcement precipitated a sharp fall in the price of Elektrim shares on the Warsaw Stock Exchange. (Rzeczpospolita, p. B3; Reuters) A.D.