Romania proposes Cosmote – Romtelecom merger before stock exchange listing

Telecom operators Romtelecom and Cosmote Romania could merge before Romtelecom's listing on the stock exchange, which would diminish the Romanian state's share participation in the company, according to Romanian Communication Minister Valerian Vreme. “Romtelecom owns 30 percent of Cosmote Romania. The communication ministry has proposed OTE group to merge the two companies before listing the Romtelecom shares; the Romanian state's share capital, which is now of 45.99 percent, would diminish. We are awaiting OTE's response to this proposal,” said Valerian Vreme. The minister said he had meetings with representatives of several investment banks, among which Citibank, Goldman Sachs and Rothschild, to talk about the possible stock market listing of the state's shares in Romtelecom. Cosmote Romania is the third largest mobile telephony operator in Romania, after Orange and Vodafone. Romtelecom is the biggest fixed telephony operator in the country. The Romtelecom listing was initially set for 2008, but was delayed for 2009 and further to an undetermined date. According to the privatization contract, Romania has asked Greek OTE, the majority shareholder in Romtelecom, to come up with an offer for the Romanian state's share package. At the same time, the ministry has started the procedures to list its share package on the stock exchange. editor@romania-insider.com