The deal envisions that each company will initially control half the seats on the 10-member board of directors, with Deutsche Telekom appointing OTE’s chief executive and the Greek state appointing the chairman.
The company, according to Mr. Alogoskoufis, will retain its current name, and the government will have to be consulted on labor issues and future disposals for as long as it retains control of at least 5 percent of the company.
Deutsche Telekom has been seeking growth potential in new markets on the Continent. OTE, which operates fixed-line and mobile operations in the fast-growing Balkans, fits neatly into Deutsche Telekom’s designs.
“The two companies will complement each other in a big region,” said Anna Bischof, a spokeswoman for Deutsche Telekom. “That’s what makes the deal so lucrative for us.”
The Greek state currently controls a 28.03 percent stake in OTE, part of which it wants to sell as the centerpiece of a multibillion-dollar privatization program.
The government announced plans to seek a strategic investor in OTE two years ago. A deal with another European telecommunications operator fell through. A new agreement would have to be ratified by Parliament.