Gov’t in a bind on OTE’s future, with developments on two fronts
OTE, the country’s main telecoms utility, yesterday appeared in the midst of weighty developments, as CEO Panagis Vourloumis was reported to have asked for and received the resignation of the president of the group’s cellular operator, Cosmote, Evangelos Martigopoulos. The resignation is seen as opening the way for the acquisition by OTE of Cosmote’s minority interests. Vourloumis openly favors Cosmote’s absorption by OTE, which now controls a 67.8 percent, and the delisting of the subsidiary’s share from the Athens bourse. Separately, Economy and Finance Minister Giorgos Alogoskoufis met Marfin Investment Group (MIG) Vice President Andreas Vgenopoulos and asked him to make public the group’s intentions regarding OTE, in which it recently acquired a 10.8 percent stake through the stock market. «The minister reiterated the government’s position regarding OTE’s privatization. Mr Vgenopoulos assured that MIG wishes to have an excellent cooperation with the government on the issue. MIG will make an extensive public statement on the issue in the next few days,» said the Economy Ministry in a statement later. Ministry sources said that Alogoskoufis told Vgenopoulos that the government, which remains OTE’s main shareholder with about 23 percent, intends to have the last word in developments concerning OTE, whether a European strategic investor is found or the utility ends up with a wide dispersion of shares like the National Bank. Other sources, closer to MIG, said that Vgenopoulos would suggest to Alogoskoufis that the role of strategic investor in OTE, which the government has unsuccessfully sought since last year, could be undertaken by Etisalat of the United Arab Emirates, in which Dubai Investment Group is the main shareholder, along with MIG. But reliable sources said that OTE does not intend to proceed with the absorption of Cosmote before the Marfin issue is clarified.
