CRO GOVT ACCEPTS BID BY DEUTSCHE TELEKOM FOR 35% OF HT SHARES

ZAGREB, Oct 4 (Hina) - The Croatian Government on Monday accepted a bid made by a German telecommunications company, Deutsche Telekom, for the purchase of 35 percent of the shares of Croatian Telecommunications (HT) for the amount of US$850 million. Croatian Finance Minister Borislav Skegro informed reporters of the Government's decision at a press conference held after the Government's session Monday. He stressed that the privatisation of Croatian Telecommunications established standards for future privatisation processes in Croatia. The Croatian Finance Minister added that the entire process was conducted transparently, openly and in a responsible manner. When asked about details of the contract, Skegro said that the contract would be signed by the end of the week, adding that 95 percent of the amount, namely US$807.5 million would be paid immediately after the signing of the entire documentation. The remaining five percent, namely US$42.5 million will be paid within several months, after it is established that all data on business transactions and finances of HT are harmonised with data given to representatives of DT. Skegro said that the amount from the sale of 35 percent of the shares of HT is, according to officials data, 4.5 percent of the gross domestic product (GDP), namely three percent of the GDP according to data of the Croatian Finance Ministry. Croatian Telecommunications Board President Ivica Mudrinic said that a HT new joint board and a supervising committee would be appointed soon. (hina) it jn