UPC eyes up Aster

Merger negotiations are still in progress between Liberty Global, the American owner of UPC Polska, and a consortium of funds that control Aster.

Together, the companies provide service to 1.4 million subscribers, accounting for one third of the whole market of 4.5 million subscribers.

Marek Sowa, deputy president of UPC Polska, said it was impossible for him to comment on the rumors. "Aster put itself up for sale so it's not as if UPC was trying to take over Aster. Any company can make an attempt at the purchase - both sector-related investors as well as investment funds. Of course UPC is interested, too," Sowa added.

"As a large sector investor UPC is naturally a potential buyer for Aster. However, talks about a potential takeover will be conducted by owners. The management of Aster is concentrating on the realization of the 2005 strategy and budget that is offering new services to our customers," Robert Kołodziej, deputy president of Grupa Aster, told Gazeta Prawna.

Consolidation of the market could facilitate competition with Telekomunikacja Polska (TP), which offers similar services - such as internet access - to UPC. TP's subscribers are double all cable subscribers added together. It is even more important in view of TP's plans to offer access to TV programs.

KD