OTE’s secret terms
Last month’s deal between OTE Telecom and Romania to inject $243 million into the country’s fixed-line utility Romtelecom seems to have contained a number of important terms that were kept secret. According to documents in Kathimerini’s possession, OTE’s raising of its share in Romtelecom from 35 percent to 54 percent will not give it control over management as originally sought, as the Romanian government, the minority shareholder, inserted a term whereby possession of a 30 percent stake enables it to block crucial decisions regarding borrowing, share capital increases, investments of more than $20 million and sales of assets. Commenting on Kathimerini’s report yesterday, OTE said in a press release that the exact details of the agreement with Romtelecom will be released on November 27, along with the company’s nine-month results.
