* Serbia offering 58 percent stake in biggest telecom
provider
* PM: expects more than previous 1.1 bln euro bid for 51 pct
stake
* Investment funds, U.S. firms among suitors
(Updates with minister, details)
By Ivana Sekularac
BELGRADE, Aug 12 (Reuters) - Serbia said on Wednesday it had
received eight non-binding bids for a majority stake in its
biggest telecom provider and that it expected the sale to reap
more than the 1.1 billion euros offered and rejected four years
ago.
The conservative government of Prime Minister Aleksandar
Vucic is trying to cash in on Telekom Srbija, one of the
country's most profitable state enterprises, under a drive to
reduce the state's footprint on the economy.
Rasim Ljajic, Serbia's minister of telecommunications, trade
and tourism, said the government had received eight bids and
would name those that met the tender's conditions next week.
A previous government tried to sell 51 percent of Telekom in
2011 but ended up rejecting a 1.1 billion euro ($1.23 billion)
bid by Telekom Austria TELA.VI as too low.
The current government is offering a 58 percent stake in the
company, which is a majority stakeholder in Bosnia's
second-largest telecom operator, Telekom Srpske TLKM.BJ , and
controls Montenegrin mobile operator M:Tel. ID:nL8N0ZJ1NI
Telekom Srbija employs around 8,600 people and reported a 13
percent increase in net profit in 2014 to 17.804 billion dinars
($165.74 million).
"We expect a significantly higher offer," Prime Minister
Aleksandar Vucic told a news conference, referring to the failed
2011 bid. "If we don't get that we will not sell," he said.
A company source told Reuters there were more investment
funds among the bidders than telecom companies. The government
has said that several U.S.-based firms are interested.
The Serbian daily Vecernje Novosti reported that Telekom
Slovenia TLSG.LJ was among those interested, a report Telekom
Slovenia declined to comment on. The paper said Deutsche Telekom
DTEGn.DE and Telekom Austria TELA.VI , both reported to have
been interested, had pulled out of the race. ID:L5N108309
A spokeswoman for the European Bank for Reconstruction and
Development (EBRD) indicated the bank was considering taking
part in the sale, telling Reuters that it was "ready to support
the authorities in privatisation of Telekom Srbija and will be
considering working with selected bidders."
($1 = 0.8973 euros)
(Reporting by Ivana Sekularac; Editing by Matt Robinson and
David Evans)
((ivana.sekularac@thomsonreuters.com; +381 11 30 44 930;
Reuters Messaging:
ivana.sekularac.thomsonreuters.com@reuters.net))
Keywords: SERBIA TELEKOM/