CONSUMER SOCIETY: LETTER OF INTENT ON SALE OF HT SHARES ILLEGAL

ZAGREB, July 16 (Hina) - The government's letter of intent on the sale of 16% of Croatian Telecom (HT) shares to Deutsche Telekom (DT) is contrary to the Act on the Privatisation of HT because it prejudges the decision of the Croatian parliament, the consumer association "Potrosac" said on Monday. The signature of Economy Minister Goranko Fizulic on the letter of intent is illegal and unconstitutional, the society says in an open letter to the minister. Talks on the continuation of HT's privatisation, which were aimed at filling this year's budget, were conducted out of public view and outside the framework of the institution of public bidding, to which the government is still bound by the current Act on HT's Privatisation, the society says. "It is difficult to understand your delight with 'the exceptional success of the talks for both sides' and the price of 500 million euros, which you consider 'fair'. The truth is that the talks were successful only for DT," reads the letter. To sell the healthiest Croatian company, which has been built for years by the users of HT services, to a partner whose business strength is questionable at a price which amounts to only one third of its real value, and provide DT with the controlling interest, continued monopoly and profits is a business failure par excellance and not a reason for celebration, reads the letter. (hina) rml