OTE expects binding offers for Cosmofon in February

15 Jan 2009

Hellenic Telecommunications Organisation’s (OTE) chairman and chief executive, Panagis Vourloumis, said yesterday that he expects to begin receiving binding offers concerning the sale of Cosmofon, Cosmote’s subsidiary in Macedonia (FYROM), in February and noted that there were currently six candidates in the tender.

The Greek parent is looking to offload the company for between EUR250-EUR300 million (USD336-USD402 million), following Deutsche Telekom (DT’s) acquisition of a strategic stake in the Greek incumbent. The German giant also controls T-Mobile Macedonia and FYROM competition authorities recently ruled that as Cosmofon and T-Mobile collectively control more than 90% of the domestic mobile market, DT must sell one of them to avoid a monopoly situation arising. The search for a new owner began after the Macedonian Competition Agency released a document stating that the agreement between DT and OTE creates a monopoly on the mobile telephony market. Turkish fixed line operator Turk Telekom, Telekom Austria and Telekom Slovenije have all expressed an interest in purchasing Cosmofon.

Greece, Cosmote, ONE (incl. on.net and Cosmofon)