Greece - approval for DTAG control of OTE

Greek parliament approve Deutsche Telekom deal for joint control of OTE

Deutsche Telekom said its deal with the Greek government to take joint management control of Hellenic Telecommunications Organisation SA (OTE) has been approved by the country's parliament.

The agreement must still be approved by regulators.

Deutsche Telekom chief executive Rene Obermann said: 'Together, OTE and Deutsche Telekom will drive innovation and consolidation in Europe's telecommunications industry.'

Under the shareholder agreement, the Greek government will sell a 3 percent stake in OTE to Deutsche Telekom for about 442 million euros.

Deutsche Telekom is buying a 20 percent stake from Marfin Investment Group Holdings SA for 2.5 billion euros and will buy another 2 percent from the market.

After the deal, each side will hold 25 percent plus one share in OTE.

The state will appoint half the OTE board and the chairman. The CEO will be proposed by Deutsche Telekom but the state has two veto rights on prospective candidates.

An executive committee, comprising executives from both sides, will examine day-to-day matters.

Panagis Vourloumis will remain chairman and CEO for an interim period after the deal completes, which is expected in the second half, Deutsche Telekom said.