Greece close to deal with DT

4 Apr 2008

Greek Finance Minister George Alogoskoufis announced yesterday that the government is close to clinching a deal with Deutsche Telekom (DT) to sell part of its controlling stake in incumbent telco OTE, reports Reuters. ‘Our aim was and remains the development of strategic cooperation with a European telecoms company. Now, we are close to a deal with…Deutsche Telekom,’ the minister said. Last month DT agreed to buy 19.9% of OTE from Greek investment company MIG, and the government indicated it was prepared to sell the German group an additional 8% share block; the state currently holds 28%. The government has also indicated it wants to share management responsibilities for OTE with DT, and this is one of the aspects of the deal that has upset the telco’s main workers’ union, OTE-OME. The union has voted to strike for 24 hours on 7 April and will meet immediately after to decide on whether to continue with rolling 24-hour strikes, while it is also considering seeking a reversal of the deal in European courts.

Greece, Cosmote, Deutsche Telekom (DT)