Serbia announced plans Friday to sell a stake in its most profitable state-run company, Telekom Srbija.

The government said earlier it plans to offer half of its 80 percent stake in the telecom firm. Greece's Hellenic Telecommunications Organization SA, or OTE, holds the other 20 percent.

Besides landline phones, Telekom Srbija also operates the MTS mobile phone network and supplies broadband Internet and cable television services.

Government officials have said they expect between euro1 and euro2 billion ($1.34-$2.67 billion) from the sale. Deutsche Telekom, France Telekom and Egypt's Orascom have reportedly shown interest in the international tender.

If Deutsche Telekom buys the 40 percent share, it could get the controlling stake in the company as it is a partial owner of OTE.

The government said it would use the money from the sale to improve the Balkan country's poor road and rail network.

But those opposed to the sale claim Serbia's ruling parties plan to boost their decreasing popularity by increasing the cash flow before general elections planned for 2012.

Telekom Srbija posted a euro150 million profit in 2009, when most of other Serbia's state-run companies reported losses because of the global financial crisis.

Norway's Telenor purchased a 10-year landline license in January, stripping Telekom Srbija of its monopoly over the services.