Marfin Vice-Chairman and Laiki Board member Andreas Vgenopoulos went on the offensive attacking the way officials at the Cyprus SEC leaked contents of confidential correspondence on the merger to the press and at the same time revealing a scheme to blackmail him into paying CYP 4.50 for the Laiki shares to win votes.
Speaking at a press conference organized in Nicosia on Wednesday Vgenopoulos said while he respects the SEC and its Chairman, but views the deliberate leaking to the press of a letter according to which the SEC had demanded that the Laiki Board reveal additional information on the proposed merger, otherwise it would block it, as unacceptable.
“They (SEC officials) leaked the contents of their letter, but failed to leak our response,” said Vgenopoulos, adding that he considers it unacceptable that a number of SEC officials would behave so unprofessionally.
Vgenopoulos said he had a meeting with the Vice-Chairman of the SEC on Wednesday morning (SEC Chairman Charalambous is out of the country), where he explained to SEC officials that based on Greek capital markets rules, Laiki/Marfin officials are prohibited from providing a firm guidance before the public offer document is approved by the Greek Capital Markets Commission.
“I also asked the SEC to tell us what additional information they want, and if it does not break Greek Capital Markets rules and the Greek Capital Markets Commission gives us the go-ahead, then we shall provide so.”
The SEC was supposed to be in a meeting late Wednesday afternoon to decide how it wants to proceed.
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Central Bank
Referring to another report in Phileleftheros that the Central Bank had asked for additional information and the way it was presented to imply that something was wrong with the merger, Vgenopoulos said here as well, the whole issue was blown out of proportion.
“Its very natural and is to be expected for the Central Bank to ask for additional information of technical nature (like 2005 accounts, ratios and other info), which will be answered,” said Vgenopoulos.
Laiki Bank CEO Christos Stylianides took the opportunity to quash rumours that the Central Bank had asked for a due diligence report.
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Blackmail
Vgenopoulos took the unusual step of then launching an attack on the opposing camp to the deal, saying they were using dirty tricks to mobilize shareholders, and directly accusing Polys Poycarpou, a prominent Laiki Bank shareholder of open blackmail.
“Mr. Polys Polycarpou came to see us in Athens a week ago on Monday and offered his support if we would pay him CYP 4.50 per CPB share in cash,” said Vgenopoulos, adding, “naturally, we declined his offer.”
Vgenopoulos said this morning, Polycarpou dropped his offer to CYP 4.30 and extended the payment to one year.
Contacted by the Financial Mirror to comment on the accusations, Polycarpou admitted that a meeting took place in Athens a week ago and this morning in Nicosia, but denied that he made such demands.
“I categorically refute the comments,” said Polycarpou adding that he will seek to receive transcripts of the Vgenopoulos remarks before making additional comment.
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Friday gathering
There is no doubt that with the credibility of the principle person opposing the merger deal in question, the momentum behind the “no” campaign has been seriously undermined.
Dissatisfied investors led by Polycarpou had planned to meet on Friday afternoon in
Vgenopoulos was categoric in his remarks regarding the dissatisfied group.
“I will not tolerate a blackmailer and a former grosser (bakkalis in Greek) plus an unnamed person or organization to jeopardize the deal. If they can back up their claims that this is not a good deal, then let them do it with facts, figures and numbers,” said Vgenopoulos.
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All in favour
He said the fact that all the major rating agencies like Moody’s, S&P and Fitch as well as UBS are saying that the merger will create value and have placed either Laiki or Marfin on positive watch goes a lot to say about who is saying what.
In addition to these, Vgenopoulos said Deutsche Bank and KBW had given their positive opinion while SFS had also advised in favour of the deal.
“I have put my reputation at stake that we shall make this deal work. And I promise you that we shall do so.”
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No guidance
Citing Greek capital market rules, Laiki and Board members are prohibited from providing a guidance on future prospects at least until November 15-20 when the Greek Capital Markets Commission is expected to approve the deal and after it becomes clear what percent of shareholders from Marfin and Egnatia accept the deal.
A senior Marfin official told the Financial Mirror that no proper guidance can be provided unless the exact ownership ratios are known.
“The current calculations have been made based on 100% approval from all sides, which is why Management cannot give a firm guidance unless they know the exact acceptance ratio.”
