Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

U.S. commerce secretary backs Calamos-EXIN bid for Greek insurer

Published 2017-05-16, 05:53 a/m
© Reuters.  U.S. commerce secretary backs Calamos-EXIN bid for Greek insurer
GS
-
MS
-
EURBr
-
FFH
-
NBGr
-
0656
-

By George Georgiopoulos

ATHENS, May 16 (Reuters) - The U.S. Commerce Secretary has backed a bid by an American-Dutch consortium to buy the insurance arm of Greece's National Bank NBGr.AT , saying a deal could help U.S. investment flows to the troubled Mediterranean country.

U.S.-based Calamos Investments, which has $20 billion under management, and EXIN Partners, a Netherlands-based investor focused on insurance, reinsurance and asset management, are bidding for at least 75 percent of National Insurance.

Calamos-EXIN is competing against three interested Chinese groups: Fosun 0656.HK , Shanghai-based Gongbao and Wintime.

Greek media have reported the deal, which has to close by the end of 2017, could be worth about 800 million euros ($882 million).

U.S. Commerce Secretary Wilbur Ross wrote a letter to Greek Prime Minister Alexis Tsipras that called for a transparent sale, a senior banker told Reuters. "It is a strong letter," he said.

"The Secretary is fully supportive of the Calamos-EXIN bid, saying it would be a good start towards improving U.S. investment flows to Greece," said the banker, who asked not to be identified.

Ross's letter was copied to the Greek bank association, National Bank's (NBG) management and the central bank, Bank of Greece, the banker said.

Founded in 1891, National Insurance is Greece's oldest insurer and provides life and non-life insurance products. The company had a 16.6 percent share of the market last year and 2015 net profit of 98 million euros ($108.11 million).

NBG, the country's second-largest lender, is selling the unit as part of a restructuring plan approved by the European Union to exit non-banking operations and focus on core banking.

Other Greek banks have been divesting non-core assets and foreign subsidiaries. Eurobank EURBr.AT has sold an 80 percent stake in its insurance unit Eurolife to Canada's Fairfax Financial Holdings FFH.TO for 316 million euros.

Another banker close to the procedure confirmed Ross's letter had also been sent to NBG management, saying the bank's intention was to complete the sale by the end of the month, although it was not certain that it would be wrapped up by then.

NBG is being advised by Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS).

Calamos Investments CEO John Koudounis said this month Calamos-EXIN had presented a hard-to-match offer, but did not give details. He said other Greek-American investors interested in Greece were watching closely. Partners bought insurer AIG-Greece from AIG in December, partnering with Canellopoulos Adamantiadis Insurance Agency.

($1 = 0.9065 euros) (Editing by Edmund Blair)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.