Dutch telecom KPN N.V. said yesterday that it has signed an agreement with the Hungarian Telephone and Cable Corporation (HTCC) on the sale of its Hungarian telecommunications activities, which are carried out by PanTel Rt, Dow Jones reported.

KPN holds a 75.2% interest in PanTel. The transaction is subject to approval of certain parties and is not expected to be completed before the end of this year, KPN said.

HTCC's purchase of the 75.2% PanTel stake marks a step towards the consolidation of the Hungarian telecommunications market.

Matáv Rt controls 80% of the Hungarian fixed-line market, the rest is divided among four other companies.

(BBJ 07.v.04)