GOVT. DEBATES PRIVATISATION OF OIL, INSURANCE COMPANIES, TELECOM

ZAGREB, Nov 7 (Hina) - The Croatian government on Thursday decided to invite three potential strategic partners, Russia's Rosneft, Hungary's Mol and Austria's OMV, to submit binding offers for the purchase of 25 percent plus one share in the Croatian oil company INA. #L# The decision to sell 25 percent plus one share of INA was brought following a heated debate on whether a draft agreement between shareholders, in addition to the sale of that package of shares, should include the possibility or option of priority to purchase shares in the further privatisation of that company. The government rejected offers submitted by Slovenia's Triglav and Germany's Allianz for the purchase of 51 percent of shares in Croatia osiguranje, concluding that next year it will be necessary to re-examine the possibility of selling up to 30 percent shares in this insurance company on the domestic market and retaining the state as the majority owner. The government adopted a decision to begin preparations to sell seven percent of shares in Croatian Telecom (HT) to HT employees or those previously employed in Croatian Post and Telecommunications (HPT). These shares would be sold at the price Deutsche Telekom paid when it purchased 16 percent of HT shares, with a maximum discount of up to 25 percent. (hina) sp/ha sb