"The government is preparing a response, and as I announced last Friday when I learned of the news, we will take a position by the end of this week," Kosor said in an interview with Croatian Radio.

"I cannot reveal anything yet, because intensive consultations are under way. I had several meetings on that topic today," Kosor said and added: "We need to consider all aspects of such a sensitive issue and we will certainly take the best decision for Croatia."

The Prime Minister rejected any connection between MOL's offer and Hungary's forthcoming presidency of the European Union, stressing that she was certain that Hungary would do all in its power to ensure that Croatia wrapped up its EU accession negotiations during its presidency, as Hungarian Prime Minister Viktor Orban had stated several times.

When asked about negotiations on INA's gas business, Kosor said the negotiations were in progress and that the government would try to put a final agreement in the context of MOL's offer to INA's small shareholders. "That's all I can say today."

Kosor said the government would insist on regular gas supply this winter and that gas prices for households should not be too high.

"I have said that the government will do all it can to ensure that gas prices don't go up as announced by the media, and that's exactly what we're doing. Please let's wait for the outcome of our deliberations on MOL's offer and for the negotiators to conclude their negotiations on the gas business. We expect all this could be completed by the end of this week," the PM said.

Kosor would not say if she was angry at Finance Minister Ivan Suker, who had apparently known about MOL's offer before the press conference at which the Hungarian company announced its plan, but noted that she should have had the information about MOL's announcement earlier.

When asked, in the context of a planned government reshuffle, if Suker would leave the government, Kosor said that should there be any reshuffle she would first discuss it with her coalition partners and colleagues in the government rather than with the press. She added that she had announced "a refreshment" of her Cabinet in relation to major investment projects through which the government seeks to increase economic growth beyond the projected 1.5 per cent.

"I discuss that idea of mine every day, including today, and it will be so until we reach the right solution, which means until we get such a team that will be able to bring some of the investment projects to implementation stage," Kosor said.