Vodafone Warns of Olympic Games Capacity Concerns

Vodafone is planning to buy out the minority shareholders and take full control of its Greek network, Panafon. George Koronias, Vodafone-Panafon's vice president and managing director told the Kathimerini newspaper that the company will de-list the company from the Athens bourse once it has control.

Commenting on preparations for the Athens Olympic Games, Koronias warned that "if either the Transport Ministry or Athens 2004 (the organizers) do not assume the initiative and responsibility for the provision of comprehensive information by all mobile operating firms, we shall have a capacity problem. The responsible authorities must be facilitated in every possible way to invest appropriately. This has still not happened, one year before the Games. Monopolistic views in favor of the sponsors have prevailed, resulting in the danger of a telecommunications blackout."

Greece's telecoms equipment maker Intracom has a 9.43% stake in Panafon and is the largest single minority shareholder in the company. Vodafone currently owns 65% of Panafon, having recently increased its holding from 61%. The company purchased a 10.85% stake from France Telecom last year.

Koronias said that the buyout will follow the same procedure as in Sweden, Spain and Portugal, which were public offers with a maximum premium of three percent over the public share price."

Posted to the site on 22nd July 2003