OTE Workers to Strike Against Deutsche Telekom Stake Buy

ATHENS -(Dow Jones)- A union representing workers at Hellenic Telecommunications Organization (OTE) said Monday its members will Wednesday strike in protest against the sale of a 20% stake in the company to Deutsche Telekom.

Telecommunications workers' union OME-OTE had already said it would participate in a nationwide general strike called for March 19 by Greece's two umbrella unions GSEE and ADEDY in protest against the government's pension reform package, but added: "We have one more reason to strike."

OME-OTE said in a statement that Deutsche Telekom's discussions with the government to buy about 20% of OTE "opens a new round of privatization for the group."

Deutsche Telekom said earlier Monday it will buy a 20% stake in OTE for about EUR2.5 billion from Marfin Investment Group Holdings SA (MIG.AT). The German company also said it intends to begin talks with the government aimed at raising its OTE stake further, but added that it doesn't plan to make an offer for all shares in the company.

The Greek state is the largest shareholder in OTE with 28.03%. For more than a year, the government has been seeking a strategic investor for the company, after selling a 10.7% stake in OTE last June.

Unions fear a further stake sale will lead to job cuts. OTE has already cut its workforce by about a third after launching a voluntary retirement scheme in late 2005.

At the end of last month, OTE said it had reached agreement with unions under which a further 200 staff would be eligible for voluntary early retirement.

-By Ayse Ferliel, Dow Jones Newswires; +30 210 331 2881; ayse.ferliel@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 17th March 2008