DPTG claims drag on TPSA, Q3 seen under pressure
* TPSA's shares hit 1-month low on $545 mln arbitration fine
* GN (GN.CO) unit sees more TPSA claims at above DKK 1 bln
* TPSA and owner France Telecom maintain dividend plans
(Wraps Monday stories on TPSA-DPTG arbitration case)
By Adrian Krajewski and Teis Jensen
WARSAW/COPENHAGEN, Sept 6 (Reuters) - A fine of $545 million drove shares in France Telecom's (FTE.PA) Polish unit TPSA TPSA.WA to a one-month low on Monday, with the prospect of more claims in years-long dispute with Denmark's GN Store Nord (GN.CO) adding to the drag.
A Vienna court fined TPSA on Friday in a dispute about traffic volumes over a fibre-optic network in Poland relating to GN's unit, Danish Polish Telecommunications Group (DPTG). [ID:nLDE68301B]
GN is involved through its 75 percent stake in DPTG, in which Danish telecom TDC (TDC.CO) owns the remainder.
DPTG says it is entitled to 14.8 percent of net profit from the network between 1994 and 2009.
The arbitration ruling concerns fees between 1994 and 2004, and GN said it expected further claims against TPSA to run to more than 1 billion Danish crowns ($180.3 million). [ID:nDKT005081]
The polish telecom operator admitted the claims would have a negative impact on its bottom line in both the third quarter and the full year, as its provisions for the first claim were 476 million zlotys short of the fine.
"TPSA may broaden its provisions to a level fitting for both claims," BZ WBK analyst Pawel Puchalski told TVN CNBC. "This might suggest there will be no net profit (for TPSA) in the third quarter."
DIVIDEND
TPSA, which is reviewing further options to challenge the ruling, added the payout would not affect its dividend policy. But shares in the former communist monopoly fell to their lowest since August 4. At 1056 GMT they were trading at 16.65 zlotys, down 2.6 percent.
"If the company is determined to hold on to dividend payouts, it could do it through raising debt," Ipopema Securities' Waldemar Stachowiak said.
TPSA Chief Executive Maciej Witucki was not immediately available for comment.
Shares in GN jumped by as much as 6 percent, as the company said it would use part of the arbitration award to fund a share buyback. At 1056 GMT, the shares were ahead 4.95 percent at 44.50 crowns.
France Telecom was unfazed by the decision and said it would maintained its financial goals. [ID:nLDE67802X]
The French group said it had already made a provision for the potential impact of the decision, which was excluded from the group's 8 billion euros cash flow outlook for 2010.
The company also reaffirmed its commitment to a dividend of 1.40 euros a share for 2010, 2011 and 2012.
(Writing by Adrian Krajewski, additional reporting by Cyril Altmeyer in Paris; Editing by David Cowell)
((adrian.krajewski@thomsonreuters.com; +48 22 653 9709; Reuters Messaging: adrian.krajewski.thomsonreuters.com@reuters.net))
($1=2.879 Zloty)
($1=5.546 Danish Crown) Keywords: TPSA DPTG/
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