MediaTel signed a letter of intent with Dlugie Rozmowy on cooperation with regard to operations, M&A’s and ownership links. The merged entity would become the second biggest wholesale operator in Poland after TPSA. Our view: We view the likelihood of a prompt merger as small, given discrepancy of owners’ goals and past experience of prolonged M&A negotiations in the telecom business. We do not expect the news to impact today’s trading on TPSA.