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UPDATE 2-OTE denies reports of job cuts in 2009

Published 06/17/2009, 09:21 AM
Updated 06/17/2009, 09:25 AM

* Officials say no time to implement cuts in 2009

* Will look at early exit scheme after this year

* Brokers association file complaint on DT deal

(Adds brokers association complaint paragraph 10)

By Harry Papachristou

ATHENS, June 17 (Reuters) - Greece's largest telecoms group OTE dismissed press reports of an imminent early retirement plan at its Greek fixed-line unit, with company officials saying no such move was planned this year.

"We have no specific voluntary exit plan at this point," a senior official told Reuters on condition of anonymity.

OTE will look into an early exit scheme, but such action would be taken after this year, the official said. Greek press reports in recent weeks had speculated that OTE planned to offer early retirement to up to 3,000 staff in 2009.

"There's definitely no time to work out details within 2009," the official said.

The former monopoly is struggling to check costs after sharp competition from alternative operators and slowing Balkan economies dent its revenue.

After years under state management, personnel costs at OTE's Greek fixed-line business have risen to about 30 percent of total operating costs, higher than European peers, where the average is about 22 percent, according to company estimates.

The official also dismissed reports that the company planned to offer early retirement to between 2,000 and 3,000 employees.

"It's totally misguided to speculate on the size of the programme," he said.

In 2006 OTE announced a large-scale voluntary exit plan for more than 5,000 employees nearing retirement. "Any new exit plan will be completely different from the 2006 scheme," the official said, without giving further details.

Germany's Deutsche Telekom AG last year acquired a 25 percent stake in OTE to expand its footprint in the Balkans. The Greek government, which owns 25 percent, has an option to sell a further 5 percent to Telekom this year.

BROKERS FILE COMPLAINT AGAINST DEUTSCHE TELEKOM DEAL

On Wednesday the association of Athens stock exchange member brokers (SMEHA) challenged the 2008 agreement between Greece and Deutsche Telekom to share control of OTE.

"SMEHA ... filed a complaint with the European Commission against the OTE-Deutsche Telekom agreement because it did not include a public offer for all OTE shareholders," the association said.

SMEHA, which numbers 50 members excluding bank brokerages, said OTE's minority shareholders should have been offered to sell their shares to Deutsche Telekom at the same price the German company bought a 3 percent stake from Greece.

SMEHA's complaint comes a day before Deutsche Telekom's CEO Rene Obermann is to meet Greek Finance Minister Yannis Papathanassiou in Athens. According to Greek press reports, the two men will discuss Greece's put option to sell a further 5 percent OTE stake to DT this year. (Editing by Rupert Winchester)

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