Lusaka - The political opposition in the southern African country of Zambia has warned investors bidding for the country's telecommunications company it will re-nationalize the company if elected in 2011, local radio reported Friday.

The opposition Patriotic Front and United Party For National Development (UPND) opposes the privatization of the Zambia Telecommunications Company (Zamtel), saying the company should be recapitalized instead of sold.

The party also accuse the government of not following due process in the sale. The Cayman Islands-based company that valued Zamtel was also contracted by government to oversee the privatization, without going through the normal tender process.

Foreign investors willing to buy Zamtel were doing so at their own risk because the opposition would nationalize Zamtel directly after the 2011 general elections, if elected, UPND leader Hakainde Hichilema said Friday.

The UPND has formed an opposition pact with Sata's PF in the hope of unseating the ruling Movement for Multiparty Democracy (MMD).

President Rupiah Banda's government has selected eight firms as pre-qualified bidders for the purchase of 75 per cent of Zamtel.

Zamtel needs investment of 200 million dollars to meet its short-term liabilities.

The bidders are Altimo Holdings of Russia, Bharat Sanchar Nigam Limited (BSNL) and Majanagar Telephone Nigam of India, LAP Greencom of Libya, Portugal Telecom, Telkom SA Limited of South Africa, Orascom Telecom Holdings of Egypt and Unitel of Angola.

The government of Africa's largest copper producer has been at loggerheads with the opposition since Banda was elected president in October last year.

The opposition accuses Banda of being soft on corruption, compared with his predecessor, Levy Mwanawasa, who died after a massive stroke last year.(dpa)