Deutsche Telekom to pay 2.5 billion Euros for stake in Hellenic Telecom

BERLIN, March 17 – Deutsche Telekom AG said Monday it has agreed to purchase a 20 percent stake in Greece’s largest phone company in a 2.5 billion euro deal. The company said it looks to increasing its ownership share in the future. Bonn-based Deutsche Telekom is Europe’s largest telecommunications company. In a statement it said it would buy shares in Hellenic Telecommunications Organization SA, or OTE, from Greek private equity firm Marfin Investment Group for 26 euros each.
MIG currently holds nearly 20 percent of Hellenic Telecom, making it the company’s second-largest shareholder, with slightly more than 98 million shares.
Greece’s government is the largest shareholder in the company, holding just over 28 percent of the company stock.
In a statement, Deutsche Telekom said it hoped to “initiate discussions with the Greek government with the aim to reach agreement in the very near future.”
Hellenic’s presence extends across Greece and into neighboring countries through its mobile phone unit, Cosmote, which counts customers in Albania, Macedonia, Bulgaria and Romania. Hellenic also holds a controlling share of Romtelecom, the former Romanian telephone monopoly.