Rumour on the Wind: Weather buyout of Tellas hits regulatory snag

26 Nov 2007

The 100% takeover of Greek fixed line and broadband operator Tellas by Egyptian-owned Weather Investments has failed to win final regulatory approval from Greece’s National Telecommunications & Post Commission (EETT), according to sources close to the company, quoted in a story posted online by EETT’s objection to the deal reportedly centres on a clause that grants Weather exclusive access to Tellas’s network. The country’s Communications Minister is now expected to make a decision on the sale. Last month Greece’s Public Power Corp (PPC) signed a deal to sell its 50%-minus-one-share in the telco to its partner in the venture, Weather subsidiary Wind. Italy-based Wind previously acquired Greek cellco TIM Hellas and its subsidiary Q-Telecom, and is rebranding all its Greek mobile and fixed operations under the Wind Hellas banner. Under the deal, Wind agreed to pay PPC EUR175 million (USD248 million) for its stake whilst assuming EUR50 million in debt. PPC leases an extensive fibre-optic network running parallel to its power infrastructure to Tellas, and the sale terms kept this arrangement in place.

Greece, Wind Hellas, WINDTRE (incl. Wind and 3 Italia)