Romanian government indicates that OTE will not submit an offer to buy RomTelecom

1 Jun 2011

According to Reuters, Greek telecoms company OTE has decided not to submit an offer to acquire the 45.99% stake in RomTelecom that it does not already own; OTE currently holds the remaining 54.01% stake in the telco. A statement issued by the telecommunications ministry reads: ‘The Greek group OTE mentions that at this moment in time it cannot submit an offer for RomTelecom shares due to reasons related to the continuation of the economic crisis in the region and in Greece, and due to the current financial strategy of OTE to reduce its exposure to debts. However, in case circumstances change, OTE group might reconsider its position’.

As reported by TeleGeography’s CommsUpdate, in November 2010 Bucharest slapped a EUR1 billion (USD1.37 billion) price tag on its share of RomTelecom. In February 2011 Romanian communications minister Valerian Vreme reiterated the government’s previously-stated intention to list its RomTelecom stake on the local bourse if the desired deal with OTE fell through.

Romania, Cosmote, Telekom Romania Communications (formerly RomTelecom)