OTE-Deutsche Telekom talks progress

Talks between Germany's Deutsche Telekom over the future ownership and management of Greece's biggest phone company, OTE, have made progress, an Associated Press report said.

'The discussions to conclude a shareholders' agreement between the Greek state and Deutsche Telekom regarding the future of OTE have shown significant progress and will continue next week,' the Greek Finance Ministry said in a statement

The deal faces strong opposition from Greek trade unions and opposition political parties, which argue Greece's conservative government should not allow foreign control of OTE, the report added.

Last month, Deutsche Telekom announced plans to acquire a 20% stake in OTE, Greece's former incumbent, for about €2.5 billion (US$3.9 billion), from Marfin Investment Group Holdings.

That deal, however, is contingent on a follow-on agreement with the Greek government.