Aspis bid for USB cleared, but rejected

The Commission for the Protection of Competition decided that the public offer made for the acquisition of a minimum of 50% plus one share and a maximum 60% of the issued share capital of Universal Bank (USB) at a cash consideration of CYP 0.90 per share, by ‘Aspis Pronia A.E.G.A.’ and ‘Commercial Value A.A.E.’, does not violate competition rules. The last day for acceptance of the public offer is the 2 of November 2006.

Despite the ruling and the favourable opinion expressed by independent advisors to the USB Board, Moore Stephens Stylianou & Co. who said the price consideration of the bid is fair and favourable, the Board of USB decided to advise shareholders not to accept the takeover.

Furthermore, the takeover attempt has also failed to clear the regulatory approval of the Central Bank, which has the power to approve or reject bids for licensed commercial banks above 10%. Greek reports also suggest that Aspis has not yet secured regulatory approval from the Greek authorities.