GOVT. CHOOSES ADVISER FOR SECOND STAGE OF HT PRIVATISATION

ZAGREB, July 20 (Hina) - The Croatian government on Thursday confirmed the Schreder Salomon Smith Barney investment bank had been chosen as financial adviser in the second stage of the privatisation on Croatian Telecom (HT). Depending on the project's value, Schreder Salomon will receive 0.95 percent in remuneration if HT's shares are offered in a public tender, or between 0.35 and 0.45 percent if they are sold to a strategic partner. Schreder Salomon was chosen also due to more favourable conditions in a EUR550 million bridge loan. Schreder Salomon was chosen a few days ago by a government commission. The other candidate was Credit Suisse First Boston. Schreder Salomon's conditions were more favourable in terms of remuneration, since Credit Suisse demanded one percent, or between 0.50 and 0.60 percent, as well as in terms of the bridge loan. The Schreder Salomon loan should be realised by the end of October, including EUR250 million in syndicating loan, with a LIBOR interest rate plus one percent and one percent remuneration, which is between nine and 9.25 percent, and EUR300 million with an interest rate of 7.38 percent over between 18 and 36 months. Credit Suisse had offered a EUR250 million direct loan and EUR300 million in short-term eurobonds. (hina) ha mm