COURSE OF HT PRIVATISATION PROCESS HITHERTO

ZAGREB, Sept 30 (Hina) - Senior officials of the Swedish-Norwegian consortium Telia-Telenor have not yet commented on Wednesday night's decision of the Croatian Government by which their bid to purchase 35 per cent of the Croatian Telecommunications company (HT) was refused and a new round of bidding announced. The Croatian Government has given Telia-Telenor and Deutsche Telecom, which was interested, but did not submit a bid, the opportunity to submit new, "financially stronger" offers by 10am, October 4. Both bidders have refused to comment officially before this date. Croatian Finance Minister who is also a member of the HT Privatisation Council, Borislav Skegro, said Wednesday night after the Government session that the Government "has reason to believe that both bidders who took over all the documentation on September 15, submit their offers, which are expected to be significantly larger that the previous US$611 million", offered by Telia- Telenor. In case the offers are too low, the Government will refuse both again, Skegro stressed. Skegro refused to comment on alleged information that Telia- Telenor would not continue bidding. The Croatian Post and Telecommunications National Employees Union Thursday supported the Government's decision not to accept the offer of US$611 million, as it held this amount was by far lesser than the true value of 35 per cent stock of the HT. The Union, however, stressed it was not the right time for selling the HT, and it opposed the decision on prolonging the bidding. The Union held that the extension of the deadline for offers was "in favour of Deutsche Telecom, which requested this earlier," and it seemed as "concession to their blackmail". Deutsche Telecom, which participated in the process from the start, did not submit an offer, nor did its representatives appear at the opening of the bidding on September 23. Deutsche Telecom representatives said at the time their company had on September 21 decided not to submit an offer for the purchase of HT. However, at the same time, they also said they were still interested in purchasing HT stock with a mutually acceptable contract. There was some information in the public for several days that Deutsche Telecom had requested an extension to the bidding deadline, expressing dissatisfaction with the presented standardised contract. Croatian Telecommunications are one of Croatia's most successful companies owned by the state. A strategic investor is offered the purchase of 35 per cent of its stock; seven per cent of the shares will be offered for purchase to HT employees and former employees at more favourable prices; seven per cent will be given out to Homeland War soldiers. To protect national strategic interests, the state has decided to keep 30 per cent of the shares whose divided will be directed to the pension fund. The remainder of the shares will be offered as a public bid in the second round of the privatisation process which should begin in the year 2000, when HT shares will be available for purchase by any interested persons. Dresdner Kleinwort Benson (DKB) estimated HT's worth between US$ 2.4 and 4 billion. (hina) lml jn