Greek Parliament Approves Deutsche Telekom Deal for OTE

ATHENS -(Dow Jones)- Voting along party lines, the Greek parliament early Thursday approved a controversial deal that would split ownership and management control of the country's largest telephone company between the Greek government and Deutsche Telekom.

By a vote of 151 to 144, the parliament okayed an agreement under which DT would acquire a 25% plus-one-share stake in Hellenic Telecommunications Organization (OTE), paving the way for the German company to take eventual majority control of the Greek telecom.

The agreement, reached in mid-May between DT and the Greek government, foresees a period of joint ownership and management control under which each would hold an equivalent stake in Greece's one-time monopoly telephone company.

However, a series of put options incorporated into the agreement gives the Greek state the right to reduce its stake in OTE further in the future, something it indicated it wants to do.

The deal between Greece and DT follows a separate agreement between DT and Greek private equity company Marfin Investment Group Holdings - previously the second-largest shareholder in OTE - to acquire MIG's 20% stake in the company.

Altogether, DT has paid some EUR3.2 billion to acquire its stake in OTE.

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

(END) Dow Jones Newswires

Posted to the site on 19th June 2008