The (new) tussle over Novartis, Benny and Tsipras, Stefanos’ “4” and Evangelos the liaison, the knives in IT, and a love letter

Greetings! The old folks used to say, “a village with few houses is a bad village,” and that phrase came to mind with SYRIZA, who, after pulling each other’s hair out all weekend in the second basement of a hotel in Metaxourgeio, suddenly they remembered the Novartis scandal. So, it seems that journalist Lianis claimed someone apologized on behalf of Tsipras to Loverdos. Then it was written on enikos.gr that Tsipras also apologized to Venizelos for Novartis, but Tsipras’ circle denied it—though not with extreme outrage, as they say—and the hair-pulling began again. In Greece we say, “grab an egg and shave it” (meaning, it’s a pointless effort), but let me remind you, first, that Tsipras himself admitted months ago at a Kathimerini conference that “some mistakes were made in handling Novartis,” and second, there is a court decision exonerating these people. So, even if no one apologizes publicly, I don’t see why someone can’t do it privately, whether they’re a politician or a baker. By the way, I checked, and there has been no Tsipras-Venizelos meeting, nor any apology to Loverdos.

The Truth

Since we’re on old topics, let me tell you what my source said happened back then. When the Novartis case first emerged, there was a government meeting at M.M. (Maximos Mansion) with Tsipras as prime minister, Voutsis, the Speaker of the Parliament, Paraskevopoulos as the former Minister of Justice and an esteemed lawyer (!!!), and Tsipras’ right-hand man, Tzanakopoulos, who was Minister of State, if I remember correctly. During that meeting, some “evidence” was presented that implicated three Health Ministers—Loverdos, Avramopoulos, and Adonis—regarding Novartis, and some more vague nonsense from Papagelopoulos about others. Basically, anyone that Mimis, Prokopis, and (less so) the other from Rafina didn’t like politically, they labeled as suspects, including Samaras, Venizelos, Stournaras, and the completely uninvolved Pikrammenos. When the leader Alexis saw this, according to my source, he freaked out and said, “What is this? All hell will break loose!” But the wise old guard of the KKE Interior—Voutsis and others—told him, “Let’s not get involved or we’ll be accused of ‘dirty ‘89’ again; let Justice take its course.” But they didn’t realize that “Justice” was… Mimis and his gang! So, everything got tangled up, leading to one of the most embarrassing political conspiracy cases in modern Greek history, and those who were disgraced still have every right to shout about it today.

The Law is the Law… 4 out of 20

I’ve learned that most of the police protection for Kasselakis has been removed by the Hellenic Police (ELAS), and only 4 officers remain from the 20 or so he originally had. There was a protest about this, but the official response was that things can’t be any different because Stefanos is not the president.

Rumors…

It’s a shame, as the “Clerical Circle” ousted poor Stefanos. He could have coordinated with newly elected president (congrats Nikos) Androulakis, and with the indomitable Evangelos Apostolakis as a liaison, they might have landed serious blows on K.M. in Parliament.

The Complaining Chinese, the Love Letter, and the…ADMIE Steering Wheel

Now that ADMIE, with the crucial help of the government, has made strides on the Crete-Cyprus cable despite the many outstanding issues (e.g., the allowable revenue, the Full Notice to Proceed, the Cypriots entering the project’s share capital, the change in methodology, etc.), I hear they are packing bags for a trip down the…Silk Road to “warm up” relations with China’s State Grid. The minority shareholder of ADMIE (holding 24% of its shares) has started complaining about the back-and-forth on the electricity interconnection, but mainly because the Operator is paying for the project but hasn’t yet received approval for the allowable revenue to recover its expenses. This is a serious issue for ADMIE’s management. However, the trip to China doesn’t seem to be directly linked to developments around the GSI. It’s believed to send deeper messages, possibly connected to the expiration of the current board’s term in the coming months. Let’s not forget that in 2019, when New Democracy won the elections, State Grid sent a “love letter” in support of keeping Manos Manousakis at the helm of the Operator. Except for 2021, when they tried to pressure him out as CEO, Manousakis now seems to enjoy the government’s trust—something that, of course, will be clarified by December, as the Greek government must either renew his term or propose someone new as ADMIE’s manager. We shall see…

Knives Out in IT: G. Kyriakopoulos vs. N. Vardinoyannis – Watsa

And suddenly, the knives came out in the IT sector as DIS (Dynamic Integrated Solutions) publicly accused Real Consulting and Praktiker Hellas of violating its rights and took the matter to court. Let’s note here that DIS isn’t an unknown or minor player in the IT sector. It was founded years ago by Yiannis Kyriakopoulos, and in 2000, it merged with Computer-Logic to form Logic-Dis, creating the largest IT group in Greece. In 2006, Kyriakopoulos left the company and founded the “new” DIS, which is now led by his son, Panagiotis. According to DIS, the Athens Single-Member Court of First Instance, in a ruling (precautionary measures), found it likely that DIS’ intellectual property rights were violated by the two companies regarding software it provided under contract to Praktiker Hellas. DIS is now seeking multi-million euro compensation from Real Consulting and Praktiker Hellas for the damage caused, and the criminal prosecution of those responsible. So far, neither Real Consulting (controlled by Nikos B. Vardinoyannis) nor Praktiker Hellas (owned by Fairfax’s Prem Watsa) have made any official statements. However, sources close to the first company unofficially stated that they will respond promptly, as the company’s legal department is reviewing the case. They also unofficially said they find this claim entirely unfounded and questioned the timing of the issue’s emergence.

Benny…the Diamond

I don’t think there’s another billionaire in the world who has been arrested four times at airports (at least as far as we know), convicted in Switzerland—where the police raided and scoured his home—and is wanted in Romania. Only Benny Steinmetz has managed all this, and yet we sold the National Bank’s real estate to this “diamond” of international business.

Alpha Bank: €120 Million for the Malls in Cyprus

As noted on LinkedIn by Alpha Bank’s General Manager, G. Emiris, the bank coordinated and covered the €120 million financing for the Mall of Cyprus and Mall of Engomi in Nicosia. The investor is Pareto, one of South Africa’s largest real estate companies and a major developer and investor in Cyprus. This transaction, Emiris notes, highlights Alpha Bank’s leadership in significant deals and landmark investments in Cyprus.

Mediobanca on DTC and NBG’s 2025 Dividend

The details from yesterday’s newmoney report on the accelerated amortization of deferred tax credits (DTC) were mentioned in Mediobanca’s October 14 Banking Daily, one of the most widely read daily reports in the European banking sector. Specifically, Mediobanca’s report cites newmoney’s coverage of the banks’ intention to announce with their third-quarter results the acceleration of DTC amortization, aiming for full amortization by the early 2030s, as opposed to the initial schedule of the 2040s. This, the report notes, would help regulators approve higher dividends in the coming years. The article also mentions the possibility that National Bank may increase its dividend payout to 60% for the 2025 fiscal year.

The Acquisition of ELTON

There were occasional rumors about ELTON Chemicals being acquired, but it turns out that the listed company is the one making acquisitions. For 6.3 million euros, it acquires “Lekos Chemicals,” which operates in the production and distribution of raw materials and chemicals in the food industry. With this move, ELTON expands its presence in this specific sector and gains a new customer base. It’s worth noting that the acquisition was financed with 5.5 million euros from a five-year bond loan from Alpha Bank, while the rest was covered with its own funds. Lekos is estimated to achieve a turnover of 12 million euros for 2024. Despite the prospects created by the acquisition, ELTON’s stock remains… indifferent, with the well-performing company stuck for a long time at a market capitalization of 45 million euros.

Salpigidis VS Vryzas: This Feud Has Been Going on for Years

This feud between two former international strikers has been simmering for over a decade, all because of an old debt and a house in Chalkidiki. On one side is Zisis Vryzas, who had a long career with Skoda Xanthi, PAOK, and in the Italian league, as well as being part of the Greek national team that won Euro 2004. On the other side is Dimitris Salpigidis, who played for PAOK and Panathinaikos, and stood out for the national team, being the first Greek player to score in a World Cup finals match (against Nigeria). Their conflict started in 2013, when, according to the case’s history, Vryzas borrowed 65,000 euros from Salpigidis but never paid it back. The dispute went to court when Salpigidis filed a lawsuit against his former teammate, which was heard in November 2018, with the verdict in Salpigidis’ favor coming on April 18, 2019. This resulted in the maisonette owned by Vryzas in Chalkidiki being targeted for electronic auction. In June 2019, it was seized for 97,232.38 euros, and the first auction was held on January 15, 2020, with a starting price of 250,000 euros, but without success. After more than four years, the “vendetta” resurfaced as a new auction was scheduled for May 31, 2024, with the same protagonists—Vryzas as the debtor and Salpigidis as the initiator. However, the property didn’t go under the hammer as the auction was suspended, creating the impression of an informal settlement. But things weren’t so simple, as the property was listed again for auction on September 27, 2024, which was also suspended. Now it’s up again for December 18, but who knows what will happen next. For the record, the property in question is a 125 sq.m. maisonette in a residential complex located in “Zandrachi” or “Tigani Rachi” of Afytos Community, in Kassandra, Chalkidiki, and it’s the second from the sea. The starting bid has been set at 200,000 euros, 20% lower than the initial auction price.

Green Bond from PPC

PPC’s management is ready to proceed with the issuance of a “green” bond worth 300 million euros. As is usually the case, this bond will be tied to specific goals for reducing emissions. A detailed Sustainability-Linked Bond Performance Report will accompany this bond, which includes a sustainability clause (Sustainability-Linked Senior Notes), with a likely maturity date in 2029. If PPC fails to meet its greenhouse gas emission reduction targets, the bond’s interest rate will increase by 50 basis points (0.5%).

Aegean Fights Back

The stock of Aegean remains grounded below a market capitalization of 1 billion euros, although yesterday it showed signs of trying to take off and aim for better performance. Despite yesterday’s impressive rise (+1.89% at €10.22), the stock is still about 20% lower than six months ago, during a time when wars make it hard for European airlines to catch their breath. It’s noteworthy that in the third quarter of the year, which is “hot” not only because of the temperatures but also due to increased tourist traffic, Aegean’s passenger traffic for international routes dropped by 3% compared to the same period in 2023. This mainly reflects reduced activity in Israel and the broader Middle East (Beirut, Amman), as well as a significant reduction in chartered flights, which was a strategy to address the scarcity of available aircraft. Naturally, Aegean’s management is trying to compensate for the lost revenue through other activities, and the market seems to sense this very effort to “take off.”

Karditsa Moved to…Larissa and Will Continue in Volos

The Cooperative Bank of Karditsa inaugurated a full-service branch in the center of Larissa, signaling its intentions to expand into neighboring regions. At the opening, the Governor of Thessaly, D. Koureta, mentioned that he is a customer of the Bank, while Chairman G. Boukis claimed that the Cooperative Bank of Karditsa has (domestically, of course) the highest capital adequacy ratio. CEO P. Tournavitis announced that the next goal is to establish a new branch in Magnesia, specifically in Volos.

2.9 Billion Raised from the Stock Exchange

Since last December, over 2.9 billion euros have been raised from the stock exchange. In 50% of cases, current prices are lower than the prices at which the public offerings took place. However, without fresh money inflows—mainly from abroad—it seems that our market’s strength is not enough to sustain the same pace. Yesterday, we saw the transaction value fall well below 100 million euros, reaching 81.7 million euros, of which 3.08 million were in block trades. The General Index, with help from Coca Cola, Aegean, and Metlen, managed to hold onto 1,411 points (-0.37%), with the banks (except Alpha) closing in negative territory. Neither National Bank nor Cenergy gained strength from their successful public offerings—quite the opposite. Metlen drew confidence from the spectacular records set by aluminum prices, but its upward momentum (+2.25%) was interrupted by some anxious sellers who took the opportunity to gain liquidity, sending the stock to 33 euros (+0.3%). The low trading volume was taken advantage of by mezzanine stocks in the Alternative Market, as all closed in positive territory.

Markets, Theory, and Gold

The theory goes that bond prices and gold prices follow parallel paths as safe havens during times of economic hardship and interest rate fluctuations. In the past three weeks, there has been a sharp drop in bond prices (meaning interest rates that affect them have risen), while the dollar is climbing. These two factors should normally push gold prices down. However, gold’s price is 29% higher since the beginning of the year, flirting with new record highs of 2,700 dollars per ounce. If 2024 ended today, gold would have recorded its best year in the last 15 years. If the upward trend continues, gold could have its best year since 1979. But 1979 was a year of rampant inflation, and gold surged +126% in 12 months. Today, inflation is supposedly under control, and interest rates are expected to follow a downward path. Global official gold reserves have reached 1,170 million ounces, the largest amount since the 1970s. So if gold buyers aren’t afraid of inflation, they’re likely worried about major geopolitical tensions around the world.

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