Vodafone terminates merger with Wind Hellas (Greece)
World’s leading mobile communications company Vodafone has terminated plans of a potential business deal with Wind Hellas. According to reports, the decision was taken after the British firm faced opposition by the European Union regulators. Sources claim that the merger, if allowed to go through, would result in a market having only two operators, which was the prime reason for the opposition.
As per sources, Vodafone had reported a US$ 710 million loss in November 2011 for its unit in Greece owing to discounted tariff plans and declining cash flow. The merger between the two firms would have helped Vodafone to significantly cut costs and compete better with rival OTE.
Vodafone is yet to make an official statement regarding the reason for terminating the deal.
OTE supports merger between Vodafone and Wind Hellas (Greece)
Hellenic Telecommunications Organization (OTE S.A.), the largest telecommunications provider in the Greek market, has reportedly said that the regulatory authority should approve the merger of Vodafone Greece with Wind Hellas, so as to avoid another bankrupt company.
According to reports, Tsamaz, CEO, OTE has said that he approves the merger as he would rather have a less fragmented market with stronger participants focused on long-term profitability. As reported earlier by Wireless Federation, in August, Vodafone Group PLC had spoken with Largos Ltd., which owns Wind Hellas, regarding a possible merger opportunity.
The deal, if successful, would provide Vodafone with an enlarged customer base, helping it to significantly increase its presence in the Greek mobile market.
OTE aims for $415.4 mn in cost cuts (Greece)
Greece’s incumbent telephone operator, Hellenic Telecommunications Organization SA, or OTE, aims to cut operating costs by US$415.74 million as the group struggles with flagging revenues in its fixed-line division.
According to reports, OTE’s management is eyeing cost cutting measures in all areas of the company, including possible layoffs in Greece and abroad.
The report comes just days after OTE announced US$44.34 million in cost-cutting measures and sacked 120 employees at its Cosmote mobile operations.
OTE set to sell Telekom shares (Greece)
Greek telecoms company OTE has reportedly told the Serbian government that it is ready to sell its 20% stake in Telekom Srbija.
The sale is expected to take place during the upcoming international tender of the Serbian state-owned telecoms company.
According to reports, OTE has sent a letter to the Serbian government, confirming that it is ready to sell its shares as part of a package that will be offered to interested investors.
The new investor – according to plans will pay at least US$1.9 billion for a 51% stake in the company, with 31% coming from the government, and 20% from OTE. The deadline for submitting bids has been set for 21 March.
OTE to take $177 million for pension charge (Greece)
If reports are to be believed, Greek telco OTE has announced that it will take a US$177 million charge on 2010 earnings to settle a government claim over pension liabilities.
Greece’s cash-strapped government stated in January 2010 that it would claim more than US$138.56 million from OTE to plug a hole in public finances caused by the company’s 2005-06 voluntary pension schemes.
OTE, which disputes the claim, stated that it was taking the charge because of accounting rules.
OTE to sell Its 20% stake in Telekom Srbja
Serbian press reported that Hellenic Telecommunications decided to sell its 20% stake in Telekom Srbja, according to Proton Bank.
In its morning report, Proton says that Serbian government stated that it could sell a 31% stake in the operator instead of 51%, if OTE was to sell its stake.
The starting price was set at EUR1.4bn for the 51% stake, implying EUR2.7bn for the whole company and EUR549mn for 20% stake owned by OTE.
France Telecom is not expected to place a bid as the price is considered too high, while Vimpelcom decided to make an offer, according to the reports.
Additionally, Telekom Austria, DT, Turkcell, America Movil, and Weather Investments have also applied to participate in the tender.
The deadline for the submission of bids is set on March 21.
OTE eyes Serbian unit sale
Greek telecom incumbent Hellenic Telecoms Organization SA’s Chief Executive Michael Tsamas, said that the company is leaning towards a sale of its Serbian unit minority stake but needs more time to consider its strategy in Romania.
According to Tsamas, Hellenic Telecoms (OTE) is prepared to sell its 20% stake in Serbia’s Telekom Srbija, but only if the price is right.
The CEO added that as far as Romanian operations go, OTE needs another three months to decide whether it will raise its stake or acquire all minorities in Romania’s No. 1. Telecommunications company Romtelecom, since it needs to examine all its options before a final decision.
OTE owns 54% of Romtelecom. The remainder is owned by the Romanian state which in November clarified that it would like to quickly dispose of its 46% stake by a trade sale or an IPO listing on the Bucharest Stock Exchange.
The EGM also ratified the appointment of Tsamas as the new CEO. According to sources, the CEO’s contract expires in 2013 and his remuneration will be 15% lower than the previous CEO Panagis Vourloumis.
The Greek state has a 20% stake in OTE and Deutsche Telekom AG has 30%. Both the German company and the government appoint the firm’s management.
OTE is one of the largest telecom players in South East Europe with operations in Albania, Bulgaria, Romania and Serbia, in addition to Greece.
Romania mulls to sell Romtelecom stakeRomania mulls to sell Romtelecom stake
Romania wants to sell its 46% stake in the country’s former telecoms monopoly Romtelecom, it has told Greek telecoms operator OTE, which holds the rest of the company.
According to OTE, State Secretary of Romania’s Ministry of Communications Marius, Fecioru informed the participants of the intention of the Romanian government to sell the 46% of shares that the Romanian State holds in Romtelecom.
As per the company, OTE issued the statement after its CEO Michael Tsamaz met Fecioru in Bucharest.
Romtelecom is Romania’s largest fixed-line telecom operator. In 1998, OTE paid the Romanian authorities $675 million for a 35% stake in Romtelecom, plus usufruct agreements–meaning it could derive profit from the company–over another 16% of the company’s shares.
The Greek company became majority holder in Romtelecom in 2003, after it paid another $273 million to the state.
3 telco Bought Documents in Telekom Sale
As per the Telecommunications Minister Jasna Matic, Deutsche Telekom AG, Telekom Austria AG and France Telecom SA bought tender documents as the government prepares to sell a 51% stake in Telekom Srbija DD.
According to Matic, the three potential buyers have acquired the documents recently in the ongoing tender that closes on Nov. 26.
Telekom Srbija is 20% owned by Greece’s Hellenic Telecommunications Organizations AS, or OTE, which has not yet decided if it would sell its stake. If it decides to divest the holding, the Serbian government would sell only 31% of the 80% it owns.
A sale arranger has valued the entire company at US$3.28 billion. The sale is to be completed in the first quarter of 2011. Telekom Srbija controls 60% of Serbia’s mobile- telephone market. It also has 40% and 26% of mobile-phone markets in neighboring Bosnia-Herzegovina and Montenegro, respectively, through subsidiaries.
Michael Tsamaz to become the new Chairman, CEO of OTE
Greece’s biggest telecom OTE has named Michael Tsamaz as its chairman and chief executive. It will be effective from Nov. 3.
Greece and Deutsche Telekom, which together own 50% of OTE, agreed on Tsamaz as CEO and chairman of the company.
According to OTE, this selection expresses the common will of the two main shareholders.
Tsamaz, 51, replaces retiring chairman and CEO Panagis Vourloumis, who was widely credited with turning around the state-linked telecommunications operator during his six years as head of the company. Vourloumis, 73, is expected to retire at the end of his term.
Tsamaz has served as head of OTE’s mobile subsidiary Cosmote since September 2007. In the past 10 years, Cosmote has grown to become the leading mobile operator in both Greece and southeast Europe, and has been a leading profit center for OTE, which has seen its dominance in fixed-line telephony gradually eroded by competition.
According to Guido Kerkhoff, DT’s representative on the OTE board, Tsamaz’s considerable international experience and proven business skills have made him one of the leading executives in Greece, as his track record with Cosmote proves beyond doubt. These are exactly the qualifications the company was looking for in finding the right person to head OTE.
Tsamaz joined the OTE group in 2001 serving in various management positions before being appointed as head of Cosmote. He has also worked for Vodafone Group PLC’s Greek subsidiary, and for tobacco conglomerate Philip Morris in Greece and eastern Europe.
