Serbia's Minister of Economy Nebojsa Ciric said Friday the governemnt had begun negotiating with Telekom Austria to sell 51 percent of Telekom Srbija, adding that the company would not be sold for under EUR 1.4 billion.

Telekom Austria's original bid was EUR 950 million.

If the Austrian company offers EUR 1.4 billion, Telekom Srbija will be privatized, otherwise it will reamain in government ownership, Ciric told reporters.

The tender for the Telekom Srbija sale expired March 22. Telekom Austria was the only bidder.

The Austrian company was given a deadline to improve its original offer of EUR 950 million for the shares and another EUR 450 million in investments over the next three years. The deadline is April 12.