State wants EUR 1 billion for its share package in Romtelecom

Romania wants to get EUR 1 billion for its 45.9 percent share package in telecom operator Romtelecom. “As a representative of the state, the Communication Ministry will take into account the market realities and will not sell the share package at any price. We will deal with the issue as any serious business,” said Communication Minister Valerian Vreme. The state will either sell its share package in Romtelecom, or list it on the stock exchange. OTE, the majority shareholder in Romtelecom, has already been asked to file an offer for the remaining share package, which is due by the end of the year. 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