HIGHEST OFFER FOR 51% OF INSURANCE COMPANY SHARES EUR 130 MILLION

ZAGREB, March 8 (Hina) - The government is satisfied with the non- binding offers submitted for the purchase of 51 percent of shares of the Croatia Osiguranje insurance company. The offers are in the amount of the company's estimated market value, sources close to the government said on Friday. The highest preliminary offer for the majority share in Croatia's largest insurance company revolves around EUR130 million. Seven such offers have been received to date, from Germany's Allianz, a Croatian consortium, Austria's Grawe and Uniqua, the Leucadia National Corporation from the US, Israel's TBI Holding, and Slovenia's Triglav. The European Bank for Reconstruction and Development and the World Bank's IFC have also expressed interest, although for a minority package. The next step in the privatisation of Croatia Osiguranje will follow after a government adviser has analysed all the non-binding offers. The adviser must suggest a small number of bidders who will be asked to submit binding offers after due diligence - a detailed inspection of the company. The media speculated that the state might cede 25 percent of Croatia Osiguranje to the Catholic Church in exchange for church property seized by the state in the past. Unofficial government sources have confirmed this. The state currently owns more than 77 percent of the company's shares. Following the sale of the majority package, it will retain around 26 percent. The same sources have also confirmed that talks have not been held with the Catholic Church, although they have been held with some dioceses which submitted restitution requests. One of the major world insurance companies, Italy's Generali, intends to enter the Croatian market, government sources said. (hina) ha sb