Deutsche Telekom rumoured to be chasing OTE stake

12 Mar 2008

According to unnamed sources quoted by news portal reporter.gr, Deutsche Telekom is close to acquiring a strategic stake in Greek former fixed line monopoly OTE. According to the same anonymous informants, Marfin Investment Group (MIG), which owns a 19.75% stake in OTE, intends to sell a part of its stake to the German telecoms giant. Spero News wrote on Friday that ‘secret’ meetings were underway involving OTE, Greek government ministers and either one or two potential strategic partners, with UBS and Credit Suisse acting as advisors, whilst a source close to OTE told Athens News ‘the government will do whatever it takes to get a European telco as a strategic investor for OTE…but it will avoid publicity until the last possible moment.’ The state tried and failed last year to find suitable bidders, and in late June opted for a domestic stock market placement of 10.7% of OTE’s shares, to institutional investors, reducing its stake from 38.7% to 28% and raising EUR1.1 billion (USD1.5 billion) towards national debt reduction.

Greece, Cosmote, Deutsche Telekom (DT)