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Business

Telekom to Take Control of Greece's OTE

Deutsche Telekom has said it will take over management control at Greek telephone company OTE. The deal would make the German phone giant present in nearly all south-eastern European countries.

Fiber optic cable

Deutsche Telekom is expanding its presence in south-eastern Europe

The only blanks left would be Slovenia and Kosovo, said Telekom in Bonn on Wednesday, May 14. It has been investing abroad as its fixed-line network inside Germany loses market share in the face of fierce competition.

Under the accord settled earlier in the day with the Greek government in Athens, Telekom is to expand its OTE equity to 25 percent plus one share.

This would be pooled with a matching stake held by Athens, so that the Germans control 50 percent plus two shares. The Greek government is to retain authority over military aspects of the telecommunications service.

OTE is market leader in fixed and mobile communications in Greece and also has subsidiaries in Romania, Bulgaria, Macedonia and Albania as well as a 20 percent stake in the main Serbian phone company.

The purchase price for Telekom will total 3.2 billion euros ($4.9 billion), according to Wednesday's announcement. The accord still has to be cleared by the Greek parliament.

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