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A deal between Greece and Deutsche Telekom over the future of Hellenic Telecommunications Organization (OTE) is expected to conclude next week, a senior finance ministry official said Thursday. "If everything goes well, we expect a deal to be concluded next week," the official said following a meeting of the Greek government's privatization committee. In March, Deutsche Telekom announced plans to acquire a 20% stake in OTE, Greece's former monopoly telecom operator, for about EUR2.5 billion, from Marfin Investment Group Holdings SA (MIG.AT). That deal, however, was contingent on a follow-on agreement with the Greek government. Since then, Deutsche Telekom has been in talks with the Greek government to discuss raising its stake in OTE further - as well as the delicate issue of management control at the company. The Greek government is the largest shareholder in OTE, with a stake of just over 28%, and effectively appoints the chairman and chief executive of the company. The deal comes amid intense union opposition, which staged two 24-hour strikes this week.
Source:Dow Jones Newswires |
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