(Updates with calculation by HSBC in fourth paragraph.)
June 2 (Bloomberg) -- Deutsche Telekom AG said it hasn’t yet received a notice from the Greek government to exercise the country’s option to sell another 10 percent in Hellenic Telecommunications Organization SA to the German company.
The final price Bonn-based Deutsche Telekom will have to pay for the stake is therefore not decided yet, company spokesman Andreas Leigers said via phone today. Greek newspaper Imerisia reported today that Deutsche Telekom will pay the country’s government 411 million euros ($593 million) and that the transaction will be closed by the end of June.
Europe’s largest phone company owns 30 percent in the Greek operator, also known as OTE, consolidates it and determines its chief executive officer. Greece’s Finance Minister George Papaconstantinou last week sent a letter to Deutsche Telekom to initiate the “further privatization” of OTE, of which the government owns 20 percent, to drive forward a 50 billion-euro asset sale program and reduce the country’s budget deficit.
HSBC Holdings Plc calculates the price of the 10 percent stake to be about 400 million euros, or 8 euros a share, according to a note sent to clients today. The calculation uses a formula, agreed between Deutsche Telekom and the Greek government in 2008, of the average volume-weighted share price of OTE shares over the past 20 trading days before the formal notice, plus a 15 percent premium, the bank said.
OTE shares dropped 2 percent to 7.04 euros in Athen trading as of 12:56 p.m. Deutsche Telekom declined 0.4 percent to 10.17 euros in Frankfurt.
--with assistance from Maria Petrakis in Athens. Editor: Simon Thiel
To contact the reporter on this story: Cornelius Rahn in Athens at firstname.lastname@example.org
To contact the editor responsible for this story: Kenneth Wong in Berlin at email@example.com