Greek Government Aims to Retain 20% Stake in Ote

ATHENS -(Dow Jones)- The Greek government aims to retain at least a 20% stake in dominant phone company Hellenic Telecommunications (OTE), Finance Minister George Alogoskoufis said Friday.

Speaking in a radio interview, Alogoskoufis said that under the law, a 20% stake gives the holder certain rights and a strategic role in the company.

Currently, the Greek state controls 28.03% of one-time monopoly phone company OTE and has indicated it wants to sell down some of that stake to a strategic foreign investor.

Earlier this week, Deutsche Telekom announced the acquisition of a 20% stake in OTE, paying about EUR2.5 billion.

Since then, Alogoskoufis has met with management of Deutsche Telekom to discuss issues relating to management control of OTE, as well as the German telecom company's desire to raise its stake in OTE further.

According to press reports, the government is ready to sell an 8% stake in OTE to Deutsche Telekom, raising some EUR1 billion.

-By Alkman Granitsas, Dow Jones Newswires; +30 210 331 2881; alkman.granitsas@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 21st March 2008