BIDS FOR PURCHASE OF CROATIA INSURANCE SHARES OPENED

ZAGREB, July 4 (Hina) - Two binding offers have been submitted for the purchase of 51 percent of shares in Croatia's largest insurance company, Croatia Insurance, one from the German based Allianz, which offered 86.1 million euros, and the second from the Slovene "Triglav" insurance company, which offered a total of 120.5 million euros. #L# Allianz is offering 56.1 million euros for the shares (347.72 euros per share) and an increase of capital stock worth 30 million euros, while Triglav is offering 105 million euros for the shares (650.81 euros per share) and an increase of capital stock of 15.5 million euros. Economy Minister Hrvoje Vojkovic said that the entire transaction could be completed in September this year. Asked if he was surprised with the large discrepancy in the two offers, Vojkovic said that he was not as he was familiar with the privatisation process. However, he stressed he was satisfied in principle with both offers, noting that their technical part was quite important as well. Triglav said in a separate press release that their offer included funds from Steve Bubalo, a Croat immigrant from California. The company expects other Croatian shareholders to join it in the process. Allianz said in a statement that along with the basic amount of 86 million euros, it was willing to submit a binding offer for the take-over of the remainder of shares, worth up to 140 million euros. Seven preliminary, non-binding offers were submitted for the purchase of 51 percent of Croatia Insurance shares in March this year. Unofficial sources indicated that along with Allianz's and Triglav's offers, the Israeli TBI Holding and a local consortium would submit binding offers as well. (hina) sp sb