CROATIAN GOVT, DEUTSCHE TELEKOM SIGN LETTER OF INTENT

ZAGREB, July 13 (Hina) - Croatian Economy Minister Goranko Fizulic and a member of the Deutsche Telekom (DT) management board, Jeffry A. Hedberg, on Friday signed a letter of intent on DT's purchase of another 16 percent of Croatian Telecom (HT) shares at a price of 500 million euros. The talks on the transaction lasted long and were held in unfavourable conditions on the capital market, especially on the telecommunications stock market, Fizulic said. "The talks were exceptionally successful for both sides and the price is fair," he said. This is the first big sale of shares in a company during the mandate of the incumbent government, he said. Everybody in DT is absolutely delighted with the partnership with the Croatian government, Hedberg said, expressing satisfaction that HT has made another step forward in its development. He said today's event was very important for Croatia's integration into the European Union as well. The agreement on the purchase of a 16-percent share in HT, by which DT gains a majority share in HT (DT currently holds a 35 percent stock, which together with the latest 16 percent acquisition makes a 51 percent share) was reached ten days ago. It is expected the agreement itself will be signed this autumn. In order to facilitate the transaction, the government has sent a bill on changes to the Law on HT's Privatisation into urgent parliamentary procedure. (hina) sb rml