Greek group OTE will not purchase the shares of the Romanian state at Romtelecom, a decision which came after a financial evaluation of the group in Greece and the imposition of Deutsche Telekom, a majority share holder, to accumulate cash, sources close to the transaction told The Romanian state owns 46% of the shares of Romtelecom and Minister Valerian Vreme announced it expects to receive 1 billion euro for the package.

In the same time, in the OTE proposal, Greeks say they will not give up their special rights and the restrictive sell conditions imposed in the privatization contract and the agreement of Romtelecom shareholders. One of the conditions clearly states that the Romanian state cannot sell shares to a competitor of Romtelecom unless it has the explicit agreement of OTE.

Romania’s state announced in November last year its plans to sell its shares held at Romtelecom and invited OTE representatives to make an offer for the pack.