TPSA Rallies After France Telecom Offers Financial HelpPiotr Bujnicki
Telekomunikacja Polska SA, Poland’s largest phone company, jumped the most in more than two years after France Telecom SA, its controlling shareholder, offered financial help.
The shares rose 6.9 percent in Warsaw, the biggest gain since Jan. 3, 2011. The stock has been the worst-performing in the benchmark WIG20 Index in 2013, slumping 41 percent after TPSA, as the Warsaw-based company is known, cut its dividend plans and earnings worsened.
TPSA “has decided to take advantage of France Telecom’s funding capabilities in order to optimize its financial cost,” it said in a statement late yesterday. The company, in which France Telecom has a 49 percent stake, has seen revenue decline since 2007 as competition increased and the country’s phone regulator forced operators to cut prices.
“Investors are reacting positively to the fact TPSA has managed to organize financing from its parent company,” Konrad Ksiezopolski, a Warsaw-based analyst Espirito Santo Investment Bank, said by phone today. “Liquidity is crucial, especially when all players in the domestic industry are waging a war.”
The funding will help boost TPSA financial standing as the company has 400 million-euro credit line maturing this year as well as 700 million euros of bonds due next year.