Saturday, June 18, 2011

Greece - To raise money the govt is selling 10% of OTE to Deutsche Telekom for EUR 400 milllion

[washington post] Financially troubled Greece is selling 10 percent of Hellenic Telecommunications Organization SA, or OTE, to Deutsche Telekom.

Deutsche Telekom says the deal would be worth around €400 million ($584 million) at today’s stock price although the final price will be fixed later. The deal takes Deutsche Telekom’s stake up to 40 percent.

The Greek government sold an initial stake to Deutsche Telekom in 2008. It is now exercising an option to sell 10 percent more. The deal will leave the government holding 10 percent.

Greece is struggling to cut its budget deficit so it can avoid defaulting on its debts. It has already received a €110 billion ($160 billion) bailout loan package from other eurozone governments and the International Monetary Fund, and is under pressure from them to step up its privatizations to pay down its debts.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Cash-strapped Greece sells 10 percent in OTE telecommunications company to Deutsche Telekom

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