By E. Sakellari
[email protected]
Negotiations between National Bank of Greece (NBG) and Shanghai-based Gongbao to sell-off NBG's insurance subsidiary - Ethniki Hellenic General Insurance S.A. - ended unceremoniously this week following a relevant announced by the former, and with the Chinese financial and investment fund warning that it may seek legal action.
In an announcement on Wednesday, NBG noted that "...following the examination and assessment of the various aspects of the binding offer received by Gongbao Group for Ethniki Insurance, including certainty of the successful conclusion of the transaction, it has decided not to proceed with further negotiations with the prospective investor...NBG remains committed to explore alternative options of compliance with its Commitments under the Restructuring Plan as agreed with the DG Competition and will inform investors accordingly in due course."
In an angry response, Gongbao charged that NBG's board unilaterally decided to break off negotiations, while saying the reasons cited by NBG for ending contacts are "baseless", and even referring to a "scandalous" development.
