October 4, 2010 / 9:09 AM / 10 years ago

Poland's Netia says has $350 mln for possible buys

* Increased credit line with banks

* Has eyes on two smaller rivals

WARSAW, Oct 4 (Reuters) - Poland’s No.2 telecoms operator Netia NTIA.WA said it has secured more than 1 billion zlotys ($350 million) for possible takeovers, as it eyes the telecom arms of state-controlled KGHM KGHM.WA and PGE PGEP.WA.

Netia said in a statement on Monday it increased its credit line by 100 million zlotys to 700 milion, which, combined with 300 million in cash, would give it the firepower to play a central role in sector consolidation in Poland.

Earlier this year, Netia Chief Executive Miroslaw Godlewski told Reuters the company set its sights on smaller rivals Dialog, owned by copper group KGHM, and Exatel, a telecoms arm of utility PGE. [ID:nLDE67U1AH]

Netia is waiting for the two to launch tenders for their telecom units, but may face competition from Poland’s largest mobile operator by sales, Polkomtel, in which KGHM and PGE hold stakes.

Analysts estimate Dialog and Exatel are worth 800 million zlotys ($280 million) each, compared to Netia’s market value of $670 million.

Netia shares rose 3 percent, outperforming the mostly flat market. The stock has gained 14 percent this year, in line with Warsaw’s midcap index .MWIG40. (Reporting by Adrian Krajewski; Editing by Louise Heavens)

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