AUSTRIA'S STYRIA WILL BUY CROATIA'S HIGHEST-CIRCULATION DAILY

PLITVICE/ZAGREB, Aug 25 (Hina) - Deputy Prime Minister Slavko Linic told reporters at Plitvice Lakes on Friday the government and the Caritas Fund company have reached an agreement on the sale of the 'Vecernji List' daily to the Austrian media concern Styria. In a statement to Hina, the director of Croatia's highest- circulation daily welcomed the decision, which, he said, guarantees the future of the daily and its employees. #L# "We have come close to the solution and prepared a contract and the owners and founders of Caritas Fund agree that nearly four million German marks, which will be realised in this transaction, be transferred to the state account. That money will be blocked until judgement is passed regarding the establishment of possible damage or responsibility for unconscientious or illegal operation toward the Croatian state, budget or Croatian institutions," Linic said. Linic was speaking about an investigation which is being conducted into the circumstances under which the Croatian pension insurance fund in early 1998 sold the majority package of shares of Vecernji List to Caritas Fund from the Virgin Islands. Explaining the amount of four million German marks, Linic said the difference incurred since the payment by Caritas Fund and the subsequent sale of shares to Styria has been estimated at six million marks. However, two million marks will be forgiven as compensation for the costs which Caritas Fund incurred in the past year and a half. The final take-over of the daily by Styria will be discussed at the next government session. "As regards the Government, we have completed our negotiations, the contracts have been more or less defined and the process can start," Linic said, adding the contract would be signed after it was discussed at a regular government session. In a statement to Hina, Vecernji List director Branko Lovric welcomed the decision on the sale of the daily to Styria. He thanked the parties in the negotiations - representatives of Vecernji List, Government and Styria - for completing the talks to the benefit of Vecernji List. He said the decision protects the independence of journalism and prevents the establishment monopolies on the media market. This decision represents yet another turnabout in the process of sale of the highest-circulation Croatian daily. In 1998, shortly after the daily's majority package was sold to Caritas Fund, which had been registered by an anonymous owner on the Virgin Islands shortly before the purchase of the daily, the media started speculating that Vecernji List was actually bought by the Croatian Democratic Union (HDZ). Following the parliamentary elections in January this year, parliament established a commission which was entrusted with investigating the circumstances of the sale of Vecernji List. The commission established that there had been irregularities in the process of sale but that its regularity was not questionable. In late July, Marijan Kostrencic, Caritas Fund director, informed the public that the Austrian media concern Styria had given up its investment in the daily. Explaining their decision, Styria representatives said the company had given up its investment in Vecernji List because the temporary measure prohibiting the sale of the daily's shares, imposed in May by the Zagreb Commercial Court at the request of the Croatian Pension Insurance Institute (HZMO), was still in force. The HZMO had also initiated court proceedings before the permanent Arbitration Court of the Croatian Chamber of Commerce. However, Prime Minister Ivica Racan in early August met representatives of Styria, with whom he discussed their investment in Vecernji List. Pavo Zubak, co-owner of Vecernji List, said in this week's latest issue of 'Globus' weekly the Croatian government and Styria had reached a certain level of agreement on the sale of Vecernji List and that the other co-owner, the Montmontaza company, was satisfied with the agreement as well. (hina) jn rml