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GOVERNMENT ADOPTS PRIVATISATION REPORT

ZAGREB, Nov 14 (Hina) - The Croatian government on Thursday adopted an analysis of the course of privatisation to date, and will soon consider and define a management strategy for about 200 companies in which the state is the majority owner and which are under the government's direct jurisdiction.
ZAGREB, Nov 14 (Hina) - The Croatian government on Thursday adopted an analysis of the course of privatisation to date, and will soon consider and define a management strategy for about 200 companies in which the state is the majority owner and which are under the government's direct jurisdiction. #L# Of a total of 1,067 companies registered in the Croatian Privatisation Fund (HFP) portfolio on Oct. 15, 748 were available for privatisation. The operational plan envisages that companies in which the state holds less than 50 percent of shares are to be privatised through a public auction at the Zagreb or Varazdin Stock Exchanges. Ninety-one companies in which the government share exceeds 50 percent and 14 in which that share is smaller but in which investors are very interested would be privatised via a public tender. The government today adopted special privatisation models for nine consolidated agribusinesses. Plans include privatising the state's entire share in Djakovstina, Kutjevo, VUPIK, and PIK Vrbovec at discount prices. Orahovica would be sold as a whole or in parts. The Slavonski Brod-based Jasinje is already being sold in parts. As for IPK Osijek, after the completion of its division into daughter companies, the HFP will first acquire shares and then privatise them. Due to their specific situation, the privatisation of Belje and the Zupanja Sugar Refinery would be postponed. Next year's privatisation of state-owned companies includes 25 percent of the oil industry INA, up to 30 percent of the Croatia Osiguranje insurance company on the domestic capital market, and a merger of the Croatian Postal Bank and Croatia Bank, announced Deputy Prime Minister Slavko Linic. As for Croatian Telecom, a seven-percent share will be offered to employees and seven percent to war veterans. Linic said that shipyards would be privatised through an employee stock ownership plan if they were consolidated. The situation in the management and control of companies in the HFP portfolio has been improved, but mistakes are still made as there are no sanctions against those who devastate a company, said Linic. The incumbent government has to build a system of liability for company management and control, he added. PM Ivica Racan said that in two weeks' time the government would consider and define a management strategy for about 200 companies - 178 in which the state is the majority owner and 23 under direct government jurisdiction. This will provide an opportunity to consider possible management strategies for those companies, he added. (hina) ha sb

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