Deutsche Telekom nears increased stake in OTE

Deutsche Telekom nears increased stake in OTE

Deutsche Telekom is close to finalising an agreement with Greek officials to increase its 40% stake in OTE, according to local reports.

The German operator is reportedly looking to secure an additional 10% in the Greek incumbent from the heavily indebted Greek government.

A report from a local newspaper on Saturday claimed that both sides were in “advanced talks” and were “ready to shake hands”.

The 10% of OTE which Deutsche Telekom is looking to acquire is divided between Greece itself, which owns 6%, and state-run pension fund IKA which owns the remaining 4%.

Deutsche Telekom bought its existing 40% stake in OTE in 2008, at which time it also secured a right of refusal if Greece decided to sell any further shares.

Greece has been pursuing a multi-billion privatisation strategy in a bid to reduce its significant debt but has previously been unwilling to part with its stake in OTE.

However, with privatisation revenues falling below its €22 billion target, the country has had to reconsider its options.

Earlier this month Deutsche Telekom announced it was looking to invest more money into OTE which is worth an estimated €6.1 billion on the Athens Stock Exchange.