Aspis appeals on USB bid

Aspis Group S.A. of Greece has appealed to the Cyprus regulatory authorities to safeguard its interest with respect to efforts by the Greek insurer to acquire a controlling stake in Universal Bank from the Universal Life Insurance Co.

Aspis sent letters to the Cyprus Stock Exchange and the SEC, signed by its Deputy General Manager Vasilis Adamopoulou in which Universal Life Insurance Co. CEO and majority owner Andreas Georghiou is accused to be acting against the interests of minority shareholders.

On August 7, 2006, Aspis Pronia and its related company Commercial Value announced the intention to submit a joint bid seeking a minimum 50% to maximum 60% of the share capital of Universal Bank (USB) at the price of 90 cent in cash.

The Board of Universal Life Insurance Co., holding about 61% of the share capital of USB, decided on August 11, 2006 to reject the Aspis bid, citing disagreements with its business plan, which Aspis claims was submitted only a day earlier with the Central Bank of Cyprus.

Aspis thus claims that UL and its CEO Andreas Georghiou could not have known about its business plan and thus alleges that the negative position that the Board took was against the best interests of shareholders.

Adamoupoulou is now demanding that the Board of USB discuss the Aspis bid and take a public stand on its business plan and proposal.

UL CEO Andreas Georghiou has in the meantime dismissed the Aspis allegations. In remarks to Stockwatch, Georghiou claims that Aspis CEO Pavlos Psomiades, Adamopoulou and MFS CEO Lambros Christophi handed him in person the business plan on July 31.

Georghiou says he responded to the Aspis plan on August 4, and tabled the same remarks with his board, which backed his opinion to reject the Aspis bid, which in any event also needs the permission of the Cyprus Central Bank.