New telco group emerges

2004-01-08

At the end of December 2003, the supervisory boards of telecom operators Tel-Energo and Telbank officially allowed for the two companies' merger. However, yet it has not been decided how this would be carried out. In an interview with Rzeczpospolita, Tel Energo's CEO Tomasz Kibil has confirmed that the companies are still awaiting a recommendation from their advisors. Mr Kibil also added that their networks have been virtually merged together and part of the investments for 2004 will be designated to close the process. The new telecom group, which will arise out of the merger, plans to increase its revenues by 20% to 30% in 2004, against 2003 in which Tel-Energo and Telbank recorded sales of PLN 295m and PLN 126m respectively. The new company is to specialise in services for financial institutions.