OTE chief dismisses election talk
OTE Chief Executive Officer Panagis Vourloumis played down yesterday market talk that a possible win by socialists PASOK in Greece’s upcoming national elections could drag down the company’s share by as much as 15 percent. Vourloumis, who was in Thessaloniki yesterday, was commenting on a recent research note published by investment bank Morgan Stanley that said a possible win by the ruling conservatives could result in a 25 percent rise in OTE shares. A win by socialists PASOK, however, could drag down OTE shares by as much as 15 percent, to between 20 to 21 euros, the report added. A drop of some 15 percent in OTE shares from current levels would translate into the company losing -1.7 billion of its total market value. «These are irresponsible stupidities that are being spread by different irresponsible people which have nothing to do with us at OTE. We are reading about them in different publications and I confess that we laugh,» said Vourloumis, who was placed at the helm of OTE by the ruling conservatives. The Morgan Stanley note quoted him as saying during a recent meeting with foreign analysts that the election result will affect the course of OTE’s shares. «The result of the elections, regardless of who wins them, will influence OTE, however I cannot predict how it will be affected,» he added. National elections in Greece are scheduled to take place on September 16. New Democracy is perceived by some market participants as benefiting OTE’s shares after backing a company restructuring plan that involved a reduction in staff. Regarding the government’s failure to find a strategic partner for OTE, Vourloumis said this could still take place. «OTE has serious potential to draw a strategic investor given the stock is trading at a satisfactory level,» he said, adding that the company’s exposure in the Balkans and mobile phone sector helps to draw investor interest. OTE has an -800 million investment plan in Romania for the 2007-2009 period in which it is targeting 300,000 broadband subscribers and 260,000 customers for its satellite television services, from 160,000 currently. OTE is also interested in moving ahead with a 20 percent share capital increase in Serbian Telecom, the CEO added. OTE is present in Albania, the Former Yugoslav Republic of Macedonia (FYROM) and Bulgaria. Shares in OTE, which has a market value of some -11.5 billion, ended 1.01 percent lower on the Athens bourse yesterday at -23.60.
