x

Politics

Calamos’ Bid for Ethniki Insurance Faces March 28 Deadline

February 9, 2018

ATHENS – Greek-American billionaire John Calamos’ winning offer to acquire Greece’s larger insurer, Ethniki, will run out on March 28 unless he can salvage the faltering deal that is coming apart after he sued his Dutch partner, EXIN.

The management of National Bank of Greece, which operates Ethniki Insurance, is mulling waiting out the nine-month period since the deal was signed last year to see whether the deal will stay intact, Kathimerini said.

NBG’s decision to see the nine-month period through, despite the rift within the winning bidder that puts the deal at the risk of collapsing, is seen as a tactical maneuver in the bank’s effort to disengage itself from the agreement without any legal implications that would lead to further delays beyond March 28, the paper said.

The suit was brought by Calamos Family Partners, including John Koudounis, CEO of Calamos’ asset management company in a Chicago suburb and seeks immediate repayment of more than $41 million in principal, plus interest, owed to them by EXIN under a series of loan agreements, the news agency Reuters said.

National Bank (NBG) had put its insurance subsidiary up for sale as part of a restructuring plan approved by the European Union to exit non-banking operations and focus on core banking but it had been lagging since being announced last year.

The takeover missed a Jan. 31 deadline to submit a list of stakeholders to the Bank of Greece amid reports a British fund could be brought in.

Despite the suit, EXIN insisted in a statement that it remains “fully committed to the rapid completion of the Ethniki Insurance transaction” within the deadlines. This means that the sale of Greece’s biggest insurance will come down to the last day of the period set by the deal, before NBG seeks a new bidder.

The Calamos-EXIN group won a bid more than seven months ago but didn’t naming who will be involved to finance the deal, according to Kathimerini. The British fund manages one billion euros ($1.25 billion) and reportedly wants to put 300 million euros ($373.35 million) as a partner.

EXIN claimed it sent a full set of documents with the additional data it was asked for and that the deadline for the process is March 31, not Jan. 31, the paper said, adding that it was told by unnamed sources all the information isn’t available and that an EXIN email didn’t list the bank’s monitoring department of private insurance companies as a formal recipient.

The same sources further confirmed EXIN never submitted an integrated proposal presenting its stakeholder lineup but didn’t indicate whether the deal was in any danger of collapsing.
EXIN-Calamos came out as the winning bidder last year for Ethniki, reportedly offering between 700-750 million euros ($787.25-$843.49 million) for a 75 percent stake in the insurance arm, the country’s biggest insurer with an 18 percent market share.

RELATED

HIMARE - The continued detention in Albania of Fredi Beleri, an ethnic Greek elected Mayor of Himare, now has seen Greece blocking a European Union Defense anse Security Agreement with that country.

Top Stories

Columnists

A pregnant woman was driving in the HOV lane near Dallas.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.

Video

‘Without Us, You Don’t Eat’: Greek Farmers Ride Some 200 Tractors to Athens to Demand Financial Help (Vids)

ATHENS — Greek farmers rode Tuesday some 200 tractors to the capital, Athens, demanding financial help from the government as cost of living spiked in the Mediterranean country.

KANSAS CITY, Mo — Missouri prosecutors said Tuesday that two men have been charged with murder in last week’s shooting that killed one person and injured 22 others after the Kansas City Chiefs’ Super Bowl parade.

WASHINGTON — The White House says it is preparing additional “major sanctions” on Russia in response to opposition leader Alexei Navalny's death in an Arctic penal colony.

SAVANNAH, Ga.— Attorneys suing a Georgia county over zoning changes that they say threaten one of the South's last Gullah-Geechee communities of Black slave descendants asked a judge Tuesday to let them correct technical problems with their civil complaint to avoid having it dismissed.

At seven months pregnant, Debi Corrigan was shopping for spring flowers at a Wichita, Kansas, garden center when she took a tumble.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. [email protected]

You may unsubscribe at any time using the link in our newsletter.