Shaping up for the single currency
Having taken more than three years to float an initial tranche of 8% of state telephone company OTE last year, the Greek government is this month selling a further 12%, a move that will substantially deepen the Athens stock exchange and raise the profile of Greek equities abroad. Later this year OTE plans to become the first Greek company to list in New York, by way of American depositary receipts.
Despite being state-run, OTE is reckoned to be Greece's best company. Although the delayed French telecom issue is due later in the month, this shouldn't compete too much since OTE appeals to a different set of investors. There is no shortage of confidence about investor demand on the part of the company, albeit some caution that the stock is now fully priced following the recent rally on the Athens stock exchange.
Expansion plans
OTE has big expansion plans, and later this year is set to become Greece's third mobile-phone operator, in partnership with Telenor of Norway.
Despite there being two other operators, mobile penetration in Greece is now just 5.5%