Today’s newspapers speculate that TPSA long-time CEO Mr. Jozefiak will resign at the next meeting of the company’s Supervisory Board on Monday, following the incumbent’s recent problems with the telecom market regulator. His successor is supposed to have better connections with the current right-wing political establishment, be of Polish nationality, younger and with a financial background.
Our view: The CEO replacement is by no means a remedy to TPSA problems. Note that Mr. Jozefiak has successfully managed several cost cutting programs within the company over the recent years. But challenges posed by a new regulatory policy might require a fresh look and a new defensive strategy for TPSA. Therefore we view the news as neutral to slightly positive. We reiterate our Buy rating for the stock.