A team of OTE and Deutsche Telekom managers has recently discussed with Romania's Communications Ministry officials about the state's offer to sell its 45.9 percent stake in telecom company Romtelecom. OTE is the majority shareholder in Romtelecom and will send a written offer for the state's package next week, according to data from the ministry. OTE's proposal will also include an official statement on the process the state has started to capitalize on the Romtelecom share package.

The OTE team who held the discussions with state officials in Bucharest was made of OTE president Michael Tsamaz (in picture), Romtelecom GM Yorgos Ioannidis, Cosmote CEO Stefanos Theocharopoulos and Roland Mahler, member of Deutsche Telekom's board and responsible for the European subsidiaries. Deutsche Telekom owns a 30 percent stake in OTE. Greek OTE is also the main shareholder in mobile communication company Cosmote and the Germanos retail chain in Romania.

Romanian telecom company RCS &RDS has filed an offer to buy the Romanian state’s shares in telecom operator Romtelecom, the biggest landline operator in Romania, according to Communications Minister Valerian Vreme.

“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. 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 already 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.

editor@romania-insider.com