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Don't Count Out Telsource Yet (Int'l Edition)


International -- Readers Report

DON'T COUNT OUT TELSOURCE YET (int'l edition)

Your article "And now, the shareholder manifesto" (International Business, Aug. 5) reported that a Czech court had technically invalidated the entry of TelSource as a strategic partner for SPT Telecom. That statement is incorrect. The court's decision invalidated resolutions taken at a February, 1995, extraordinary general meeting. The entry of TelSource as a strategic partner was approved at the August, 1995, general meeting of SPT Telecom. Although Martin Mosinger filed a lawsuit challenging the August, 1995, general meeting, the court in the case has not yet issued a decision. Accordingly, TelSource remains as the strategic partner, holding a 27% interest in SPT Telecom.

Roland J. Behm

Squire, Sanders & Dempsey

PragueReturn to top

LITHUANIA IS WIDE OPEN FOR BUSINESS (int'l edition)

"A stalemate has stymied reform...so investors play a waiting game" (Spotlight on Lithuania, July 15) unfairly tags Lithuania as the economic laggard of the Baltic states. In fact, since 1991, Lithuania's economy has undergone a transformation that is on a par with that of its northern neighbors of Latvia and Estonia. Moreover, the considerable investments of Philip Morris, Kraft Foods, Jacobs Suchard, Coca-Cola, Royal Dutch Shell, Motorola, and Siemens (to name just a few foreign companies) show confidence in the Lithuanian market and underline that the country is not a "black hole for business."

Lithuania does lag somewhat behind its northern neighbors when it comes to attracting foreign direct investment. However, this is in part due to the nature of the country's privatization program, which transferred assets largely to new domestic owners through vouchers. The second stage of privatization (a cash tender scheme open to both domestic and foreign bids) should speed up the flow.

In closing, the article's suggestion that McDonald's Corp. is holding off on investing in Lithuania is inaccurate. Lithuania's second McDonald's opened on Aug. 1, while over 100,000 customers have crowded into the first McDonald's since it opened two months ago.

Algis Avizienis

General Director

Lithuanian Investment Agency

Vilnius, LithuaniaReturn to top


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