UPDATE: The Romanian state will start the procedures to list telecom Romtelecom on the Bucharest Stock Exchange after Greek OTE said it won't buy the state's share package, according to a statement by the Romanian Communications Minister. The merger between Romtelecom and Cosmote in Romania will also be started, according to the ministry.

Greek group OTE doesn't want to buy the Romanian state's share package in telecom company Romtelecom, as the timing is not right, according to Romania's Telecommunications Minister Valerian Vreme. OTE's letter to the Romanian Government officials arrived on Friday, May 27, which was the deadline for OTE stating its intention in respect to the Romanian telecom operator.

OTE's decision was mainly triggered by the economic crisis in the region and in its home country Greece, as well as by its strategy to reduce its debt exposure, according to the statement.

The state owns 45.9 percent in Romtelecom, while OTE, 54.01 percent. The Romanian state will either sell its share package in Romtelecom, or list it on the stock exchange. OTE has been asked to file an offer for the remaining share package, which was initially due by the end of last year.

Romtelecom’s revenues in the first quarter of the year dropped by 10.9 percent, to EUR 166.3 million, while its EBITDA went down by as much as 62.6 percent, to EUR 22.2 million. These were caused by a limited level of consumption and by very aggressive offers on the market.

“If we won’t reach an agreement with the majority shareholder in Romtelecom, the Greek group OTE, I would prefer to have Romtelecom listed. But there was an offer from RCS & RDS to take over the shares,” according to Vreme. The size of the share package which could be listed on the stock market is yet to be decided by a consultant.

editor@romania-insider.com