State-controlled Serbian company Telekom Srbija will buy 20% of its own shares from Greece's Hellenic Telecommunications Organization SA, or OTE, for EUR380 million, the company said over the weekend.

Telekom Srbija's managing board and general meeting approved the share buyback, but the wording of the agreement is still subject to negotiations, the company said in a statement.

OTE, in which Deutsche Telekom has a 40% stake, has held the Telekom Srbija stake since 2007.

The Serbian government tried to sell a majority stake in Telekom Srbija earlier this year, but rejected a bid from Telekom Austria AG as inadequate.