A NCIIAL MII ROR THIISS WEEK
close to the CYP 105 mln in M&A deals in 2002, but far behind the CYP 439 mln in 2000. A record 42 deals were announced in 2004, mostly in the last quarter of the year and 82% of the value in cash. The biggest deals of the year were CYP 25 mln by NETI for 55% of Avacom Computer, CYP 17 mln by Louis Public for 88% of Louis Hotels and FW Woolworth investing CYP 14 mln in ITTL and 5.6 mln in Lakkos Real Estate. CLR Investment concluded its takeover of Laiki CLV Ventures at CYP 5.1 mln.
Trade unions at the ‘quango’ semi-government organisations were about to strike following the deadlock in talks over the renewal of labour collective agreements after the government offered zero wage hikes for two years and 2% in the third year, later improving the offer from 2% to 3%.
The Nicosia Municipality has secured a euro-loan worth CYP 6 mln from the German-based DePfa Investment Bank on highly favourable terms of 0.85% interest, repayable over 10 years, to fund running costs and the rebuilding of the Municipal Theatre. Signing the deal were Mayor Michael Zampelas and DePfa’s Erol Riza.
Bond yields dropped sharply in the multiple bond auctions with a record CYP 270 mln bids for 180 mln on offer. Most activity was on the 100-year bonds where yields plunged to 6.17% from 6.26%.
The government decision to pass on a 0.33c a litre tax for all fuels onto consumers caused an outrage, with pump prices expected to rise by 2-3c a litre to 43.9c for diesel and 95-ctane petrol to 44c.