Bonn  - A deal that gives Deutsche Telekom the management control at Greek telephone company OTE means that the German phone group will soon be represented in almost all south-eastern European countries, Telekom said Wednesday in Bonn.

The only blanks left would be Slovenia and Kosovo, said Telekom, which has been investing abroad as its fixed-line network inside Germany loses market share in the face of fierce competition.

Under the accord settled earlier in the day with the Greek government in Athens, Telekom is to expand its OTE equity to 25 per cent plus one share.

This would be pooled with a matching stake held by Athens, so that the Germans controlled 50 per cent plus two shares. The Greek government is to retain authority over military aspects of the telecommunications service.

OTE is market leader in fixed and mobile communications in Greece and also has subsidiaries in Romania, Bulgaria, Macedonia and Albania as well as a 20-per-cent stake in the main Serbian phone company.

The purchase price for Telekom will total 3.2 billion euros (4.9 billion dollars), the announcement said in Bonn. The accord must still be cleared by the Greek parliament. (dpa)