Slovenia expects to decide on Telekom sale in two weeks

(Adds comment from selling agency, share price, background)

LJUBLJANA, May 21 (Reuters) - Slovenia should decide in two weeks whether to sell the country's largest telecoms network operator Telekom Slovenia to private equity investment firm Cinven, state investment fund SDH said on Thursday.

A person familiar with the transaction said on Wednesday that Cinven, which is the only bidder for Telekom Slovenia, had raised its offer to 130 euros per share, which would value the whole of the state-controlled company to 850 million euros.

"SDH is examining Cinven's improved and final bid ...In line with the complexity of the procedure SDH will hopefully decide on the sale within two weeks," SDH said.

SDH is coordinating the sale of 72.75 percent of Telekom. If Cinven buys the stake it would then have to offer to buy the remaining shares in the company at the same price.

Telekom is the largest of 15 state companies that have been earmarked for sale in 2013. So far four have been sold.

Shares (Frankfurt: DI6.F - news) in Telekom closed 0.92 percent lower on Thursday at 108 euros while the SBI market index gained 0.03 percent.

Slovenia tried to sell Telekom in 2008 but cancelled the process, saying the bids were too low. (Reporting By Marja Novak; Editing by Greg Mahlich)