Slovenia rejects Cinven's altered bid for Telekom Slovenia

(Updates with SDH rejection)

By Marja Novak

LJUBLJANA, June 15 (Reuters) - Slovenian state firm SDH, which is coordinating the sale of Telekom Slovenia, on Monday rejected UK investment firm Cinven's bid for state-owned Telekom, SDH said in a statement.

It said the bid was rejected because Cinven, which was the only bidder for Telekom, last week attached additional conditions to its binding bid which was sent in on May 20.

Shares (Berlin: DI6.BE - news) in state-owned Telekom Slovenia closed 5.85 percent lower at 93.3 euros on Monday amid local media reports that the sale may be cancelled. The blue-chip SBI index eased 1.34 percent.

"SDH does not accept additional conditions which the bidder added to its binding bid of May 20," SDH said in a statement, adding it was still prepared to complete the transaction without those conditions.

According to local media, Cinven's additional condition was that it retains a part of the purchase price until Macedonian regulators approve Telekom's sale of its Macedonian unit.

The sale of Telekom's Macedonian unit to Telekom Austria (Other OTC: TKAGY - news) was agreed last year but Macedonia's market regulator has until July 9 to decide whether to approve it or not.

Cinven has offered up to 130 euros per Telekom share which would value the company at 850 million euros.

Cinven was not available for an immediate comment.

Telekom is the largest of 15 companies that were earmarked for privatisation in 2013. Four have been sold while one is in bankruptcy procedures.

Slovenia planned to sell Telekom in 2008 but cancelled the sale citing low bids.

The country, which narrowly avoided an international bailout in 2013, has been reluctant to sell its major companies in the past so the government still controls about 50 percent of the economy. (Reporting by Marja Novak; editing by Jason Neely)