Vourloumis re-elected as OTE CEO
Panagis Vourloumis, the chief executive of Greece’s largest telecom group OTE, was appointed to a new three-year term at the group’s annual shareholders meeting late on Thursday. The appointment signals the government’s intent to continue restructuring at the group. The government picked Vourloumis shortly after winning elections in 2004, with a brief to streamline OTE, cut waste and lower labor costs in order to make the telecom more attractive to a potential foreign partner. The changes have been met with continued opposition from unions and opposition political parties and have led to rolling strikes. European peers have baulked at buying a stake in the company over concerns that rigid employment practices, dating from when OTE was fully state-owned, would keep growth stagnant. Greece owns about 39 percent of OTE and has put its plans to sell down its holding on ice after failing to find a strategic investor. The government is now leaning toward a private placement of about 10 percent of OTE. Shareholders also approved a share buyback scheme of up to 10 percent of OTE’s outstanding shares at a price range of -10 to -30 over the next 12 months. They also approved a -0.55 dividend per share on 2006 earnings, the first payout to shareholders in three years after OTE spent about -1 billion on a voluntary retirement scheme as part of its restructuring. (Reuters)
