UPDATE 1-Magyar Telekom says probe found wrongdoing

BUDAPEST May 21 (Reuters) - Hungarian telecommunications firm Magyar Telekom MTEL.BU said an ongoing probe has found evidence of wrongdoing at its Macedonian subsidiary in the case of 6 contracts worth over 6.7 million euros ($10.49 million).

"There is affirmative evidence of illegitimacy in the formation and/or performance of six contracts for advisory, marketing, acquisition due-diligence and/or lobbying services in Macedonia, entered into in 2004-06..." it said citing a report from the law firm conducting the investigation.

Magyar Telekom, a unit of Germany's Deutsche Telekom (DTEGn.DE), launched an internal investigation in 2006 after its auditor expressed concern over several consultancy contracts at its Montenegrin unit.

The investigation was later widened to cover its Macedonian subsidiary as well. The company said it has spent 11.3 billion forints ($71.31 million) to cover the costs of the probe.

In 2006, the investigation delayed the approval of Magyar Telekom's annual report and dividend payment by over six months and led to changes in top management.

"As previously disclosed, the company has taken remedial steps to address issues previously identified by the independent investigation, including steps designed to revise and enhance the company's internal controls," Magyar Telekom said on Wednesday.

"The Company is considering whether and to what extent the recent (legal) Status Report warrants additional remedial actions," it added.

Magyar Telekom shares were trading 0.1 percent lower at 794 forints per share at 0718 GMT on Wednesday.

(Reporting by Balazs Koranyi)