Germans to Buy Stake in Greek Operator

The acquisitive German operator, Deutsche Telekom, is set to acquire just under 20% of Greek fixed line and mobile powerhouse OTE. The former national operator of Germany will buy out the entire stake currently owned by Marfin Investment Group. It is estimated that the deal will cost DT around euros 2.5 billion. However, the transaction will require governmental approval in Greece.

Last week it emerged that Deutsche Telekom was also considering making a takeover bid for US mobile operator Sprint Nextel. The rumours that the German company might make a bid started after investment bankers Merrill Lynch reported that Sprint's new all-you-can-eat mobile voice call and text package will put most pressure on the operator's smaller rival, the German-owned T-Mobile USA. That in turn seems to have sparked the story that T-Mobile's wealthy parent will merely buy up Sprint to stop the planned price cuts harming DT's offspring.

Sprint recently reported an impressive loss for the final quarter of 2007, when it was US$29.5 billion in the red. It is also losing customers and fast, with over one million expected to jump ship this quarter. Its response has been to launch the US$89.99 all-in package, which includes all calls, texts and push-to-talk services.

Analysts at Merrill Lynch were quick to admit that they were not aware of any negotiations between the two telecoms giants, but they did point out that the current currency climate would favour a European take-over.