Hungary said on Tuesday that 11 prospective bidders had submitted letters of intent to participate in the tender to privatize the country's biggest airport operator, Budapest Airport.

State privatization agency APV said in a statement that it would publish the result of the pre-qualification stage of the tendering by July 12 and did not publish the names of those expressing their interest.

Hungary is selling 75 percent minus one share in Budapest Airport.

APV said it would accept bids only from parties who operate an airport with passenger traffic of over 10 million people a year or have shareholders' equity or capital in excess of EUR2 billion (USD$2.41 billion) or at least a BBB minus credit rating by Standard & Poor's or Baa3 rating by Moody's.

Indicative bids will have to be submitted by August 29 and APV is seeking binding bids by November 2 with the aim of closing the transaction this year.

Frankfurt Airport operator Fraport said earlier on Tuesday that it would register its interest in bidding, joining UK airport operator BAA, German construction company Hochtief, and Copenhagen Airports, who have already declared their interest.

Fraport said it would bid with Deutsche Bank and would own 51 percent if successful, with Deutsche Bank holding the balance of the stake being offered, and it would invest over EUR100 million (USD$120.7 million) if successful.

"We think a low triple-digit million euro amount is possible (for the 75 percent stake minus one share and required investments), but certainly not several hundred millions of euros," Chief Financial Officer Stefan Schulte said in an interview in Frankfurt.

While Budapest is Fraport's first pick in eastern Europe, it is willing to consider other options, should it fail in Hungary.

"If we win in Budapest we will concentrate on developing Budapest," Fraport Vice President Andrea Pal told a news conference in Budapest on Tuesday. "If somebody else wins in Budapest and there is a privatization in Prague we will consider it," she added.

Prague Airport is likely to be sold via an initial public offering, according to the Czech government, but that has been delayed until July 2006.

Pal said Fraport would not take part in a privatization of Slovakia's Bratislava Airport, one of two being sold by the government there this year.

Fraport said it was determined not to stretch its financial strength.

"Budapest Airport is certainly one of the bigger projects among our foreign holdings, maybe the biggest," Schulte in Frankfurt said. "But we will keep the investments in an appropriate range."