ATHENS -(Dow Jones)- Greece's telecommunication workers' union announced Monday that it was extending its strike action by one more day to protest Deutsche Telekom's move to acquire an equity stake and management control of the country's largest telecom company.
In a brief statement, the Greek Telecom Employees' Federation, or OME-OTE, said it would hold a 24-hour strike Tuesday (April 8), continuing its current 24-hour work stoppage Monday.
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.
Deutsche Telekom's management have also been in talks with the Greek government to discuss raising its stake in OTE further, and gaining management control of the company. Those talks are expected to be completed shortly, possibly even as early as this week.
The Greek state 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.
Local media has 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 holding to Deutsche Telekom, with the German telecom group buying an additional 2% stake from institutional investors or on the stock market.
-By Alkman Granitsas, Dow Jones Newswires; +30 210 331 2881; alkman.granitsas@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 7th April 2008
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