ZAGREB, Sept 27 (Hina) - The Croatian Telecommunications Union on Monday urged the Government to turn down the US$611 million bid by Swedish-Norwegian consortium Telia-Telenor for the purchase of 35 percent of shares of
telecommunications company Hrvatske Telekomunikacije (HT).
ZAGREB, Sept 27 (Hina) - The Croatian Telecommunications Union on
Monday urged the Government to turn down the US$611 million bid by
Swedish-Norwegian consortium Telia-Telenor for the purchase of 35
percent of shares of telecommunications company Hrvatske
Telekomunikacije (HT).#L#
The union believes the bid is too low, especially in view of the fact
that the bidder itself previously evaluated HT's worth at more than
three billion US dollars.
The union seeks that a new bid for tenders be launched, provided
that the whole sale procedure be undertaken after the impending
parliamentary elections, when the union believes political
pressure on Croatia will decrease.
The union also believes that 35 percent of HT's shares should not be
sold under US$800 million.
In today's statement, the union says the purchase contracts and
agreements submitted so far will endanger the working and social
security of many HT workers and their families, interrupt the
company's current development, and enable the strategic investor
to return in three or four years most of the money invested, during
which time non-mobile telephony and some other services will retain
the monopoly.
The union especially demands that a special agreement, i.e. a
social clause, be signed with the future strategic investor, as
Croatian pharmaceutical giant Pliva had to do in the purchase of the
Polfa factory in Poland.
Pliva obligated itself in the social clause it would not reduce
rights from the work agreement, would not lay off workers for three
years, and would not exclude any part from the company for ten
years. At the same time, salaries in Polfa immediately rose by 20
percent, while employees were given 15 percent of shares for free.
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