TP’s stock does not change after the new CEO is appointed

APA - Austria Presse Agentur
30-08-2006, 11:03

Warsaw (Puls Biznesu) – The stock of Poland’s former monopoly telecom did not change yesterday despite the change of the CEO. Analysts say there was no reason for that because the market is waiting to see the effects of the change.

Warsaw (Puls Biznesu) – The stock of Poland’s former monopoly telecom did not change yesterday despite the change of the CEO. Analysts say there was no reason for that because the market is waiting to see the effects of the change.

On the first trading day after TP said that Maciej Witucki would replace Marek Jozefiak as the CEO, the stock did not change in a spectacular way. In the morning the stock grew slightly. It was adding 2.6 percent during the day but the whole WIG20 index was advancing even faster.

“The market has not reacted to the change because there was no reason for that. It’s hard to interpret this fact. IT is too early to evaluate a person which is not known in the telecom sector”, Krzysztof Kaczmarczyk, DB Securities analyst commented.

He added that one has to wait to see the effects of Maciej Witucki’s management, which will be possible in six months. The new CEO has so far managed Lukas Bank.

„There is no reason for any stock price change. In a company like TP, the CEO is not key for the company. It is the strategic investor who makes the most important decisions and sets the strategy. The business solutions are checked in different markets where France Telecom is operating”, Michal Marczak from DI BRE Bank added.

Analysts agree that the new CEO should not change the general strategy of TP.

“It would be risky. The strategy should be continued, some assumptions should be strengthened”, Krzysztof Kaczmarczyk said.

He meant increasing sales and improving the image of the company.

“The new CEO should improve relations with the Office of Electronic Communications. The recent decisions of the office disturb TP’s business. The market is being liberalized but what’s important is the rate of this process. The Office of Electronic Communications want the changes to be implemented fast while TP would like reforms to be made step-by-step. Both entities should work out a compromise here”, Michal Marczak believed.

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Podpis: APA - Austria Presse Agentur

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