Poland's TPSA denies plans to spin off fixed-line business

WARSAW, March 21 Thu Mar 21, 2013 3:28am EDT

WARSAW, March 21 (Reuters) - Polish telecoms company TPSA said on Thursday it was not planning to sell its fixed-line operations, denying media speculation that it might unload the shrinking business to focus on mobile telephony.

On Thursday, daily newspaper Dziennik Gazeta Prawna quoted unnamed sources as saying the France Telecom unit had already hired a consulting firm to weigh its options.

"We are not bracing for a sale of our fixed-line segment. Neither are we choosing an adviser for such a transaction," TPSA spokesman Wojciech Jabczynski said in a statement.

Dziennik speculated that the fixed-line operations, valued at up to 10 billion zlotys ($3.1 billion), could become a wholesale operator for the market, with other players owning part of the business and TPSA cutting costs.

Market liberalisation has created a competitive market, where telecom firms fight a price war and every second user has more than two mobile phones.

For years seen as a defensive stock mainly thanks to stable shareholder renumeration, TPSA last month announced another dividend cut and warned of a "deep fall" it envisaged in 2013 revenue. ($1 = 3.2234 Polish zlotys) (Reporting by Adrian Krajewski; editing by Jason Neely)

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