Athens News Agency: News in English, 06-07-27

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Gov't welcomes new, higher bid for Emporiki

[02] Foreign ministry to hold 'Ambassadors' Conferece'

[03] Work begins on Thessaloniki metro

[01] Gov't welcomes new, higher bid for Emporiki

The increased bid offers Emporiki shareholders a cash payment of 25 euros per share, up 1.5 euros per share as against 23.5 euros per share quoted in the initial offer submitted by Credit Agricole on June 13, increasing the French bank's appraisal of Emporiki's value to 3.3 billion euros from 3.1 billion euros quoted in the initial offer.

Alogoskoufis said that the Credit Agricole board had announced on Thursday morning its new public offering for Emporiki Bank.

He said the improved bid was an indication of confidence in the prospects of the Greek economy, the Greek banking system and Emporiki Bank itself.

"The government, in the framework of the decisions which have already been taken by the inter-ministerial committee for denationalisations, will examine the new data in a positive light, with the public interest, the reinforcement of competition in the banking system, and the competitiveness and extroversion of the Greek economy, as the rule of thumb".

Credit Agricole SA on Thursday announced an increase regarding the cash offer for current Emporiki shareholders, which was now 25 euros per share. The rest of the terms and conditions of the initial public offering (submitted by the French bank on June 13) remained the same, a Credit Agricole announcement said.

The announcement explained that the Revised Public Offering concerned acquisition by Credit Agricole of the full 100 percent package of Emporiki share capital, which the French bank appraises at 3.3 billion euros.

It explained that the period of acceptance during which the Emporiki shareholders may submit their statements of acceptance to the National Bank of Greece network expires on Monday, August 7, 2006, at the end of the banking hours in Greece, adding that the minimum acceptable equity stake was 40 percent.

The revision of the public offering is pending to approval by the Greek Capital Market Committee, in accordance with Article 21 of Law 3461/2006, the announcement concluded.

Credit Agricole has been a strategic investor in Emporiki since 2000, with an 8.83 percent equity stake. The other shareholders are the Public Securities Company (DEKA), a state securities manager (11.01 percent), LDN HKNL Stichting Pensioenfonds ABP (6.35 percent), the OAED state-run manpower employment organisation (5.43 percent), various social insurance Funds (20.12 percent), various public organisations (5.58 percent), foreign institutional investors (16.00 percent), Greek institutional investors (6.66 percent), and individual investors (20.02 percent).

According to Credit Agricole officials, the aim of the acquisition is to create a more powerful Greek bank, with Greek management, that will be active in the wider region of the Balkans, with the backing of a powerful international banking group, and not the creation of a Credit Agricole subsidiary in Greece.

The French banking group has announced a series of substantial investments and actions in the framework of its bid for acquisition of Emporiki including investments of 50 million euros over the next three years, the creation of provisions of 300 million euros with the implementation of the risk management rules applied by the Frency Bank, the implementation of a voluntary retirement programme for 500 employees by 2008, the hiring of 250 new employees in the sector of sales over the next two years, and the introduction of new training programmes.

The introduction of Cr?dit Agricole's business plan will have a very significant positive impact on Emporiki Bank's profitability, increase its cross-sales from 2.5 products per active customer to 5.0 products over the next five years, and substantially boost its market shares in all areas of banking activity over the next few years, according to Credit Agricole officials.

The Credit Agricole Group is the largest bank in France today, and the sixth largest in the world, active in 66 countries on all continents, with 21 million clients, 9,100 branches, 135,000 employees, and profits from banking activities standing at 25.9 billion euros. The Group owns 2,583 local banks and 41 regional banks.

The Credit Agricole offer represents the largest foreign investment in Greece to date.

Emporiki Bank, Credit Agricole discuss new improved offer

A delegation of Credit Agricole, headed by the French bankās chief executive officer Georges Pauget, on Thursday met with Emporiki Bankās chairman and chief executive officer George Provopoulos and discussed Credit Agricoleās new improved offer to buy 100 percent of the Greek bank.

The two sides also discussed the French bankās business plans for Emporiki. Credit Agricole on Thursday said it was raising its offer to buy Emporiki Bank to 25 euros per share (from an initial offer of 23.5 euros per share), valuing the Greek bank at 3.3 billion euros.

[02] Foreign ministry to hold 'Ambassadors' Conferece'

The "Ambassadors conference" was established by order of Foreign Minister Dora Bakoyannis and will take place on an annual basis. Its aim is to achieve comprehensive briefing and coordination for the entire range of foreign policy issue concerning the country.

The meeting will open with an address by Bakoyannis, while other ministers will address the ambassadors on issues concerning their portfolio, including Finance Minister George Alogoskoufis, Defence Minister Evangelos Meimarakis, Development Minister Dimitris Sioufas, deputy foreign ministers Yiannis Valinakis, Theodoros Kassimis and Evripidis Stylianidis and other officials.

The subjects of the conference will include European policy (enlargement etc), international organisations, Greece's policy in South Eastern Europe, Greek-Turkish relations, the Cyprus issue, Greeks abroad, economic diplomacy and promoting Greek economic interests abroad, developmental cooperation, security policy, energy policy, cultural diplomacy and public diplomacy.

[03] Work begins on Thessaloniki metro

The names were given for King Cassander, who is credited with founding the city in 315 B.C. and his wife Thessalonica, the sister of Alexander the Great in whose honour the city was built.

The two TBMs have been set to work by the company 'Attiko Metro SA' to open the underground tunnels that will form the future Thessaloniki metro beneath the surface of the city, where the remains of the city's 2,300-year history currently lie buried.

With the experience obtained during construction of the metro in Athens, Attiko Metro is working closely with the culture ministry's archaeological services in northern Greece, who expect the work to unearth a wealth of artifacts and remains from the city's past.

The work has currently started on the west side of Thessaloniki, in the area around the new railway station, while the company and culture ministry on Thursday signed a memorandum of understanding and cooperation at Thessaloniki's renovated archaeological museum, which will be officially inaugurated in September by Prime Minister Costas Karamanlis.

Among archaeological finds expected to be found by the dig are sections of an extended western cemetery of the Hellenistic and Roman eras near the present new railway station, sections of the city's west wall and a road linking Thessaloniki with central Greece at Democracy Square station, medieval and Byzantine-era public buildings including a hotel and possibly a monastery, and sections of the eastern cemetery, public baths and a central road in the city centre.

Archaeologists have not ruled out the possibility of smaller finds in peripheral stations, as well, though they admit that the chances are smaller.

According to Attiko Metro board chairman Georgos Yiannis, the metro tunnels will be dug at a depth of 16-21 metres from the surface in order to protect any antiquities that may exist, which are expected to lie at a depth of 11-13 metres.

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