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BT eyes Polish telecoms?
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November 1, 1999: 5:21 a.m. ET
Report: SBC loses interest in TPSA, leaves UK firm to vie with France Telecom
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LONDON (CNNfn) - British Telecommunications may rejoin the bidding for TPSA, the state-controlled Polish telecom giant, after SBC Communications reportedly pulled back from the auction, according to a report published Monday.
The Polish government is seeking between $3.5 and $5 billion for a 25 to 35 percent stake in the company after floating 15 percent last year.
France Telecom and SBC Communications (SBC) emerged as the only two formal bidders in August after BT, Deutsche Telekom (FDTE) and Tele Danmark dropped out of the race.
France Telecom is expected to complete its due diligence this week, but Houston-based SBC has dropped its interest, according to a report in the Wall Street Journal.
The newspaper cited people close to SBC as saying that the U.S. firm had offered far less than France Telecom in its preliminary bid, and would not now proceed, partly on account of the murky regulatory regime in Poland.
The Polish treasury insisted Friday that SBC was still in the running. BT declined to comment on the report and SBC officials could not be contacted.
While TPSA is viewed as a premium asset because of rapid growth in the Polish market, increasing competition and the firm's heavy investment needs have tempered interest and led many to question the government's revenue targets.
The Journal suggested that BT may renew its interest if the price is right. The Polish government could restart the tender process if France Telecom is left as the only company to make a firm bid.
France Telecom and SBC already have a presence in the Polish cellular market, but BT and partner AT&T (T) have previously expressed their interest in entering the Polish market.
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TPSA
France Telecom
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