The Swedish National Audit Office Tuesday said the country's sale of state-owned assets can be improved, adding Sweden should learn from last year's sale of an 8% stake in telecommunications operator TeliaSonera before it continues with its planned stake sales.

The government sold an 8% stake in TeliaSonera for SEK18 billion ($2.97 billion) in May 2007 as part of a SEK200 billion privatization drive.

The Audit Office's review suggested that the government could have been more active in securing a better price for the stake.

It said the stake was sold at SEK50 a share, but noted that the company's previous closing price was SEK54.75.

The Audit Office said the difference represents an 8.7% discount for buyers.

The office said it challenges the government to learn from this past stake sale ahead of future deals.

"The government largely reached a fair price. However, the government has not been active enough towards the implementing banks to reach the best possible result of the sale," said office auditor Lennart Grufberg.

The office said better control of the selling banks had probably increased the government's costs, but could at the same time have significantly increased its revenue.

TeliaSonera's board and the Swedish government have rebuffed a an initial $42 billion takeover offer from France Telecom, saying the proposal "significantly undervalues" the company.

France Telecom is expected to spend until the end of June working to reach a deal with TeliaSonera.

The Swedish government still holds 37.3% of TeliaSonera's shares.

Source:Dow Jones