Greece, Deutsche Telekom Deal on OTE Expected Next Week - Source

ATHENS -(Dow Jones)- 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.

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

(END) Dow Jones Newswires

Posted to the site on 8th May 2008