Deutsche Telekom has agreed to buy a 20 per cent stake in Greece's largest phone company, OTE, from Marfin Investment Group (MIG), the German telecoms group said on Monday.
It said it would pay 26 euros per share, or around $3.33 billion, for the stake. The move is part of Deutsche Telekom's strategy to grow its mobile communications business through acquisitions.
The agreement was subject to approval by Deutsche Telekom's supervisory board and the Greek government, which holds about 28 per cent in OTE.
Deutsche Telekom said in a statement it expects to initiate talks with the Greek government in the very near future.
Last year, Deutsche Telekom acquired France Telecom's Dutch mobile division and US wireless company SunCom.
Last week, OTE shares rose more than 2 per cent on talk that Deutsche Telekom might be interested in becoming a strategic investor in the Greek company.
MIG, whose biggest shareholder is based in Dubai, had said its holding in OTE was strategic and that it aimed for a minority representation on OTE's board.
The Greek government passed a law limiting private holdings in strategic state companies, effectively limiting MIG to a 20 per cent stake in the telecoms firm. (Reuters)
Deutsche Telekom to buy stake in Greece's OTE