The Greek government is still struggling with a bad case of simultaneous cake retention and consumption as it tries to hammer out a way that Deutsche Telekom could take operational control of the Greek incumbent, OTE.. without really taking full control.
In a sign that the talks might be at an impasse, the CEO and chairman of OTE has broken cover to urge a deal - presumably one that would give DT the proper control as it requires.
As reported in TelecomTV news a couple of weeks ago (see - Union fights DT stake in Greek incumbent), DT wants to buy a controlling stake in the Greek telco as a way of getting into Eastern Europe, where OTE in turn has stakes in Bulgaria, Serbia, Romania and Albania.
For its part, the Greek government, which still has a 28 per cent stake in its incumbent operator, would like to inject a much-needed dose of ‘modern management’ and is trying to stitch together a package that will entice DT to get involved.
The problem is that the government and DT have encountered fierce resistance over loss of Greek political control and union worries about job cuts. As a result there have been a series of strikes.
At the time of the last strike there were reports that a compromise was on the table.
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