OTE may receive German aid to pare debt
OTE telecoms, Greece?s largest phone operator, may get help from parent Deutsche Telekom AG as it tries to ensure it can repay 4.9 billion euros ($6 billion) of debt in coming years.
Deutsche Telekom may aid the unit, also known by its Greek initials OTE, by taking over its Bulgarian business, Chief Financial Officer Timotheus Hoettges said on Thursday.
It would also lend to OTE should the Greek company struggle to find funds from next year onward, in exchange for collateral and at market conditions, he said.
Deutsche Telekom, which is 32 percent owned by the German government, holds a 40 percent stake in OTE.
The Greek firm on Thursday reported second-quarter net income of 199.8 million that beat analysts? estimates. It said economic conditions and regulators mandating lower interconnection prices in most markets will hurt financial performance. [Bloomberg]
