Vreme said OTE deemed the moment “inopportune”, due to unfavorable economic conditions in Greece.
However, OTE recommended Romtelecom merge with mobile telephony operator Cosmote Romania. OTE owns 70% in Cosmote, while Romtelecom holds the remaining shares.
Romania wants to sell off its holding in Romtelecom and it had asked OTE to present a buyout offer by end-May.
OTE, Greece’s biggest telecom company, owns 54.01% in Romtelecom, while the remainder shares are in the ministry’s hands.
Mid-February, the IT&C ministry said it had initiated talks with several investment banks on the possible listing of Romtelecom’s shares. The ministry values its stake in Romtelecom at EUR1 billion.
Romtelecom is Romania’s largest fixed line telecom operator. The phone company reported revenue of EUR166.3 million in the first quarter, down 10.9% on the year. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 62.6% to EUR22.2 million.