TALKS WITH DEUTSCHE TELEKOM BEING WRAPPED UP

ZAGREB, June 29 (Hina) - Croatia's First Deputy Prime Minister Goran Granic said on Friday talks that are being conducted with Deutsche Telekom about the further privatisation of Croatian Telecom are nearing completion and dismissed claims in some media that the Croatian Power Industry (HEP) is the next company which must be privatised so that holes in the budget could be patched up. "Talks are being wrapped up," Granic said briefly when asked about talks DT has been conducting about the second stage of privatisation of HT. Deputy Prime Minister Slavko Linic confirmed in Dubrovnik yesterday the talks were being wrapped up. He described the latest media speculations about the negotiations and the price of 16 percent of HT shares as very damaging, saying they lowered HT's price in the most sensitive round of talks. Granic refuted media claims about an accelerated privatisation of the HEP which should help secure missing privatisation revenues. "The privatisation of HEP and INA cannot be adjusted to budgetary requirements but to the requirements of the reform and restructuring of the entire sector," Granic told reporters. (hina) rml