Deutsche Telekom to buy stake in Greece's OTE


Deutsche Telekom has agreed to buy a 20% stake in Greece's largest phone company, OTE, from Marfin Investment Group (MIG), the German telecoms group said on Monday.

It said it would pay €26 per share, or around €2.5 billion ($3.33 billion), for the stake. The move is part of Deutsche Telekom's strategy to grow its mobile communications business through acquisitions.

The agreement was subject to approval by Deutsche Telekom's supervisory board and the Greek government, which holds about 28% in OTE.

Deutsche Telekom said in a statement it expects to initiate talks with the Greek government in the very near future.

Last year, Deutsche Telekom acquired France Telecom's Dutch mobile division and US wireless company SunCom.

Last week, OTE shares rose more than 2% on talk that Deutsche Telekom might be interested in becoming a strategic investor in the Greek company.

MIG, whose biggest shareholder is based in Dubai, had said its holding in OTE was strategic and that it aimed for a minority representation on OTE's board.

The Greek government passed a law limiting private holdings in strategic state companies, effectively limiting MIG to a 20% stake in the telecoms firm. (Reuters)


Business Sentiment Up, Consumer Confidence Down in September Analysis

Business Sentiment Up, Consumer Confidence Down in September

Horthy Statue to be Unveiled in Parliament Parliament

Horthy Statue to be Unveiled in Parliament

UPS Appoints Regional Director Appointments

UPS Appoints Regional Director

Completion of Metro Line M3 Renovation Delayed City

Completion of Metro Line M3 Renovation Delayed


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.