OTE, the Greek telecommunication holding, made a proposition to the Romanian government to merge fixed-line telephony operator Romtelecom with Cosmote, according to a press release published by the Romanian Ministry of Communications and Information Society (MCSI). OTE also declined to buy the government's 45.99% stake in Romtelecom because of the difficult economic situation in Greece and its financial strategy to reduce its exposure to debt. The group may reconsider buying the stake if circumstances change, however.
OTE believes that the merger of Romtelecom and Cosmote will create synergy on the market through offering tariffs that are more attractive to users and will generate better profit. Read the whole PMR article here.