Greece to agree terms with DT this week, sources say

15 Apr 2008

The Greek government and Deutsche Telekom (DT) may finalise a deal giving the German telco a 25% stake in OTE by this Friday, according to sources close to the matter quoted by local news site Reporter.gr. Under a proposed shareholders’ agreement, the two parties will each take a 25% equity stake and equal representation on the board of directors of the Greek incumbent, with the government choosing the former monopoly PTO’s president and DT electing the managing director. The deal involves the state transferring 3% of its own shares in OTE to DT, and a further stake of around 2% being purchased on the Athens stock market by DT, which has already agreed to buy a share of just under 20% in OTE from Greek investment group MIG. According to Reporter.gr the same unnamed sources indicate that DT will have the right of first choice to buy stock in OTE at EUR26 per share, irrespective of the company’s current share price. The sources also said that OTE’s board will only take decisions on ‘crucial matters’ if the two parties reach mutual agreement. The agreement, which is pending approval by Greece’s 300-member parliament (Vouli ton Ellinon), will last for an as-yet undefined time period, after which, the sources added, DT will look to acquire full control of OTE.

Greece, Cosmote, Deutsche Telekom (DT)