Press Release Summary: Marfin sees no limit in its possible acquisition of OTE shares. There is noshortage of cash, only a lack of support from the government should it go too far
Press Release Body: THERE is no limit to Marfin Investment Group\'s (MIG) ambitions regarding stake building in telco giant OTE, a source familiar with MIG told the Athens News. OTE announced on October 24 that MIG has now acquired 13.95 percent of the telco.
\"There is no limit, but we will see how the market and OTE perform,\" the source said. Cash is not an issue for MIG, which has some 15 billion euros at its disposal. However, 33 percent could be a natural barrier because MIG prefers not to proceed beyond that point without the approval of the government.
The government is the main shareholder in OTE with around 28 percent, while MIG is the second largest. If MIG acquires 33 percent, it will trigger a public offer on the Athens Stock Exchange, which the government could try to block. The government has said it would only support a European telco as a strategic investor for OTE.
OTE unions and workers are opposed to a sale of OTE to a strategic investor and have made this clear via a number of protests. Andreas Vgenopoulos, MIG\'s vice-chairman, earlier told the Athens News he was not disappointed at recent announcements by Greece\'s economy and finance minister, George Alogoskoufis, that the Greek government prefers a European telco as a strategic investor.
\"On the contrary,\" he told this news service, \"as a shareholder we support the idea of gaining such an investor - but is there really any European telco interested in OTE?\"
Joint bid?
Asked by this newspaper if MIG could consider a joint bid with a European telco for OTE, Vgenopoulos said the matter could be explored. However, he resoundly refuted press rumours that MIG and its main shareholder, Dubai Investment, are teaming up with a Middle East telco such as Etisalat for a joint bid for OTE.
MIG has a good relationship with the Greek government and is happy for the time being to remain the second largest shareholder, Vgenopoulos said. MIG wants to maintain a friendly approach. As yet it has not been given a board place on the OTE board, although it wishes to gain one, he added. A forthcoming extraordinary general meeting (EGM) on November 8 could see MIG gaining a board place.
MIG\'s shares in OTE are both direct and indirect via another financial vehicle. The precise breakdown was announced on the Athens Stock Exchange on October 24: \"This participation in OTE\'s share capital includes: a) a 9.5 percent stake in OTE\'s share capital, amounting to 46,572,643 shares with corresponding voting rights, which are directly owned by MIG and b) a 4.44 percent stake in OTE\'s share capital, amounting to 21,772,970 shares with corresponding voting rights, which MIG is entitled to acquire pursuant to the terms of a financial instrument (total return equity swap), with the relevant voting rights exercised pursuant to MIG\'s instructions.\"
MIG is in the throws of a press campaign - \"Made in Greece\" - to promote the group\'s many brands. The group now boasts 47,000 employees. This figure excludes OTE personnel.
Ferry player purchases
MIG announced on October 24 that it has submitted a public offer for the remaining minority shares for both Attica Holding (of Super Fast Ferry fame) and its subsidiary, Blue Star Ferries. Specifically, MIG said that it is offering 5.50 euros per share for 49,729,822 shares of Attica Group. A separate public offer for a 51.15 percent stake in Blue Star Ferries has been submitted to the Athens Stock Exchange at 3.83 euros per share for 53,705,790 shares, MIG said.
2025
