ATHENS -(Dow Jones)- Greece's telecommunication workers' union announced Thursday a further strike next week to protest Deutsche Telekom's move to acquire an equity stake and management control of the country's largest telecom company.
Panagiotis Koutras, president of the Greek Telecom Employees' Federation, or OME-OTE, said the union would hold a 24-hour strike April 7, despite legal challenges brought by the management of Hellenic Telecommunications Organization (OTE). He added that the union is also contemplating further labor and legal action beyond next week's strike.
Last month, Deutsche Telekom announced the acquisition of a 20% stake in Greece's one-time monopoly phone company OTE, for about EUR2.5 billion, from Marfin Investment Group.
Management of Deutsche Telekom also met recently with Greek government officials to discuss raising its stake in OTE further, and gaining management control of the company.
The Greek state currently controls 28.03% of OTE and, as the largest single shareholder, determines the appointments of senior managers. It has indicated that it would like to reduce its stake in OTE further.
But the union fears further stake sales in OTE and a change in management control will lead to job cuts and affect job security. It insists that OTE must remain in public hands.
"OTE is a company of strategic importance and we believe it can play a strategic and an essential role for Greece in the Balkans," Koutras told journalists, adding that "control of OTE must remain in public hands."
A previous series of strikes in late March were successfully contested in court by the management of OTE. However, there remain outstanding questions as to whether next weeks' planned strikes are legal and a court ruling is expected soon.
Koutras said "we are determined in every way to overcome these legal gimmicks."
His comments coincided with Finance Minister George Alogoskoufis' remarks that the government is "close to finding a strategic partner" for OTE.
At a press conference Thursday, Alogoskoufis said "we are going for a balanced leadership plan that protects both the interest of the public sector as well as the interests of the company."
Greek press had speculated that the government will retain the right to appoint OTE's chairman, while Deutsche Telekom will appoint the chief executive officer of Greece's dominant phone company.
Press reports also said each party could control 25% of OTE, implying that the government would be willing to sell 3% of its current holding to Deutsche Telekom, with the German telecom group buying an additional 2% stake from institutional investors or on the stock market.
-By Ayse Ferliel, Dow Jones Newswires; +30 210 331 2881; ayse.ferliel@dowjones.com
(Alkman Granitsas in Athens contributed to this report.)
(END) Dow Jones Newswires
Posted to the site on 3rd April 2008
Posted to: www.cellular-news.com/story/30309.php