OTE puts the squeeze on Cosmote shareholders

5 Dec 2007

Hellenic Telecommunications Organisation (OTE) has raised its stake in its mobile network operating division Cosmote to 90.08% via a public share offer on the Greek stock market which began last month. With its holding now above 90%, the Greek fixed line incumbent has ‘squeeze-out rights’ over the remaining minority shareholders, forcing them to sell their shares at EUR26.25 (USD38.57) each, the same price that OTE has offered over the past few weeks. The squeeze-out procedure will lead to the eventual delisting of Cosmote.

Elsewhere, Greek company Marfin Investment Group (MIG), which recently upped its stake in OTE to around 17%, has initiated legal proceedings against the telco to force an EGM to explain the debt structure of Cosmote, sources close to the matter told Thomson Financial News. The sources also said that MIG has sent an out-of-court claim to OTE’s board alleging that Cosmote’s EUR2.9 billion, 15-month loan is disadvantageous and should be converted into medium- or long-term debt, whilst it is also seeking an explanation of OTE’s recent agreement to sell its directory information unit Infote for EUR300 billion.

Greece, Cosmote, Cosmote (old)