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Tuesday, 29 October 2019

Bank Audi’s acquisition of NBG could be postponed by up to six months

M&A WATCH- Bank Audi’s acquisition of NBG could be postponed by up to six months: The National Bank of Greece (NBG) is reportedly in talks with Bank Audi over extending its acquisition deadline by between one and six months amid an ongoing pay dispute with its employees, sources told the local press. NBG currently has until 2 November with which to reach an agreement with its employees, without which the CBE will not sign-off on the transaction.

Did NBG employees just force the CBE to intervene in Bank Audi acquisition? NBG’s employees appear to have escalated the dispute with the bank’s management over its pending acquisition by Bank Audi. The employees reportedly filed a complaint to the Central Bank of Egypt (CBE) alleging that NBG and its legal advisor, Matouk Bassiouny, are forcing them to jump ship to Bank Audi without receiving compensation, according to Al Mal.

What’s all the fuss about? The employees claim that they are entitled to severance pay if the transaction goes through, as they see the acquisition being tantamount to wrongful termination under article 122 of the labor law (pdf). Matouk Bassiouny had reassured them that nobody is losing their job or salary, and that only employees who choose not to accept transfers to Bank Audi on conclusion of the sale would be eligible to receive buyouts. The employees don’t seem to think that these reassurances have addressed their concerns.

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