Deutsche Telekom Says No Scope for Talks on Greek OTE Stake

May 11, 2011, 6:13 AM EDT By Cornelius Rahn

(Updates with visit to Greece in fourth paragraph.)

May 11 (Bloomberg) -- Deutsche Telekom AG said there is “no scope for negotiations” if the Greek government chooses to use an option to sell another 10 percent stake in Hellenic Telecommunications Organization SA to the German company.

“If the Greek government wants to sell us the stake, it will do so,” said Andreas Leigers, a Deutsche Telekom spokesman, after Financial Times Deutschland reported the company is trying to postpone the purchase. The phone operator is standing by its obligations in the shareholders’ agreement, Leigers said, adding that there are no plans to buy additional shares in the company, also known as OTE, in the market.

Greece said Apr. 15 that it wants to sell its 20 percent OTE stake this year as part of a 50 billion-euro ($72.1 billion) asset sale plan to cut the highest debt ratio in the European Union. It has the right to sell 10 percent to Deutsche Telekom at 15 percent above the average market price of the past 20 days by the end of 2011, Leigers said.

Deutsche Telekom’s management and supervisory board will travel to Greece at the end of May, Leigers said. The visit will involve a meeting with local executives.

Deutsche Telekom, with a 30 percent stake, fully consolidates OTE, determines its management, and has the right of first refusal for the remainder of the government holding. The stock rose 2.1 percent to 7.15 euros as of 11:45 a.m. in Athens trading today, valuing the government’s stake at about 700 million euros.

--Editors: Simon Thiel, Robert Valpuesta.

To contact the reporter on this story: Cornelius Rahn in Frankfurt at crahn2@bloomberg.net

To contact the editor responsible for this story: Angela Cullen in Frankfurt at acullen8@bloomberg.net

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