Greek Government blocks Marfin OTE bid

Marfin Investment Group will be unable to stage a hostile takeover bid for Greek telecoms group OTE following a new piece of legislation issued by the Greek Government, which sets out to limit the stakes foreign investors can hold in strategic businesses. The new framework will prevent foreign businesses owning more than a 20% equity holding. Any shareholding over 20% would be conditional upon approval from the Government's privatisation committee.

The move comes after Marfin Investment Group, a private equity group backed by Dubai Financial, built an 18.5% stake through share purchases in Athens-listed OTE. The finance ministry holds a 28% stake in the company and is the largest shareholder. Athens-based Marfin Investment Group has recently demanded three seats on the board, management changes and a new business plan.

The Government is still searching for strategic investors, but it announced it would only sell its shareholding to European telecom operators.

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