Romanian state to sell participation in Romtelecom, OTE asked to make an offer

The Romanian Government plans to sell its 46 percent stake in telecom operator Romtelecom and Greek OTE, the main shareholder in the telecom company, has been invited to submit an offer for the remaining share package. Another option for the sale would be listing the state's share package on the stock exchange. Greek OTE is also the main shareholder in mobile communication company Cosmote and the Germanos retail chain. Deutsche Telekom owns a 30 percent stake in OTE. Romtelecom posted an operating loss of EUR 13.9 million in the third quarter of 2010 and its revenues dropped by 6.5 percent, to EUR 181.5 million, because of austerity measures and rising unemployment. ”In the third quarter, the Romanian consumer environment was once again negatively impacted by decreasing household income, higher sales tax, and rising unemployment, as well as a higher than expected rate of inflation,” OTE said in a report. editor@romania-insider.com