(Updates with GN Store protest starting in third paragraph.)
Oct. 13 (Bloomberg) -- Shareholders of Telekomunikacja Polska SA approved today a management plan for Poland’s largest phone company to buy back shares for as much as 800 million zloty ($255 million).
The France Telecom SA unit known as TPSA has a mandate to purchase as much as 10 percent of its shares through the end of 2012. Earlier this year TPSA sold TP Emitel Sp. z o.o., an operator of television and radio towers, for 1.7 billion zloty, saying in July it would allocate about the half of the proceeds to the buyback.
The operator of the Orange brand in Poland is fighting court battles against GN Store Nord A/S after an arbitration tribunal last year ordered TPSA to pay about 2.9 billion kroner ($535 million) to DPTG I/S of Denmark, a GN unit.
Konrad Grotowski, a lawyer from Wardynski & Partners, which represents GN, protested the buyback resolution at today’s meeting, saying TPSA should use the free cash to pay DPTG. Grotowski declined to comment on whether GN Nord will challenge the resolution in a Polish court.
Telekomunikacja “doesn’t see a real threat to the execution of the buyback program” from GN’s protest, Wojciech Jabczynski, a spokesman, told reporters in Warsaw today.
--Editors: Nathaniel Espino, James M. Gomez
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