German mobile operator Deutsche Telekom is reportedly trying to stall its obligated acquisition of more shares in Greek incumbent OTE.
Greece’s Ministry of Finance is looking to sell more than 10% of its 20% stake in OTE to reduce the country’s public…
German mobile operator Deutsche Telekom is reportedly trying to stall its obligated acquisition of more shares in Greek incumbent OTE.
Greece’s Ministry of Finance is looking to sell more than 10% of its 20% stake in OTE to reduce the country’s public debt burden, according to reports.
DT, which currently holds a 30% stake in the operator, would be required to acquire a further 10% stake from the Greek government if a put option is exercised.
However, DT is negotiating for more leeway to carry out an extensive reorganisation of OTE’s fixed-line operations if it acquires the government stake, reports Financial Times Deutschland citing sources.
The German company’s management and supervisory board is set to fly to Athens to discuss the issue, the report adds.
Other OTE shareholders are international and Greek institutional investors, which collectively own stakes of 30.2% and 9.7%, respectively.
Back in May 2008, DT acquired a 25% plus one share stake in OTE, and granted the Greek state two put options to sell further stakes. Under the first option, the state sold a 5% stake to DT the following year.
The second option, enabling Greece to sell a further 10% stake in the company, has until the end of this year to be exercised.
When the put options were originally announced in 2008, DT said that if the second put option was exercised, the price per OTE share would be based on the weighted market price of the share plus a premium of 20% initially that would later fall to 15%.
DT, which was unable to comment on the recent speculation, has confirmed that “whenever they [the Greek state] decide to exercise this put option, Deutsche Telekom is obliged to buy”.
A spokesman for OTE would not comment.
