Labor unrest hounds DT's OTE buy-in effort

Deutsche Telekom's planned investment in Greek telco OTE is facing opposition from OME-OTE, the primary labor union involved in OTE. The union already has held two 24-hour strikes to protest DT's investment, largely based on restructuring and lay-offs that DT has conducted within its own organization in the past. The union fears similar thinking for OTE with the DT's arrival.

However, perhaps looking to allay such concerns, the Greek government reportedly plans to sell DT a stake in the telco that will give DT no more than the same management control in OTE that the government will retain--25 percent. DT had originally announced a 20 percent stake, but was looking to increase its position. DT now will get to name a CEO, but the government will have control over the chairman's seat.

For more:
- see this report at TelecomTV

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