Cablegate: Poland: French Want More Telecoms Stock

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS WARSAW 003286

SIPDIS

STATE FOR EUR/NCE
STATE PASS USTR FOR DONNELLY/ERRION
E.O. 12958: N/A
TAGS: ETRD EINV PL ECCP
SUBJECT: POLAND: FRENCH WANT MORE TELECOMS STOCK

1.(U) France Telecom (FT) wants to purchase the remaining
Polish government stake in Telekomunikacja Polska (TPSA),
according to an article in yesterday's daily Rzeczpospolita.
France Telecom CEO Didier Lombard said in an interview that
he hopes to begin talks with the government after the
elections scheduled for September 25.

2.(U) Although FT already has operational control over TPSA,
Lombard said that FT is "still interested in purchasing the
[Treasury] stake, which would allow us to reach a majority
stake in TPSA's capital." Lombard added that discussions
should take place within "several weeks" after the
elections. Currently, FT owns 47.50 percent of TPSA. The
stake held by Poland's Ministry of the Treasury amounts to
3.87 percent.

3.(U) Rzeczpospolita quotes Treasury Minister Jacek Socha as
saying that he expects a premium over the market price for
the stake. Unofficially, according to the report, he
estimates the GOP stake at over PLN 1 billion. Socha's
justification for the premium stems from planned changes in
regulations that will force strategic investors to call a
public bid after acquiring over 50 percent of a concern,
even if this is from the State Treasury.
Ashe

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