FT : Greek debt crisis: Key dates on the road to a possible Grexit

Greek debt crisis: Key dates on the road to a possible Grexit
Next four weeks could mark decisive phase in stand-off between Athens and creditors
The five-month stand-off between Athens and its bailout lenders may be entering its most critical phase. Leaders insist publicly that Thursday’s meeting of eurozone finance ministers is the best chance for an agreement to release €7.2bn in rescue funds Greece needs desperately.
But privately, officials admit their hopes that the gathering in Luxembourg will prove decisive are diminishing. Greece needs the funds to make a €1.5bn repayment to the International Monetary Fund by the end of June.
These are some of the key dates in the months ahead:
Thursday June 18: Best chance for a deal
Eurozone finance ministers gathering in Luxembourg for their regularly scheduled monthly hope a deal can be struck. But Yanis Varoufakis, the Greek finance minister who will attend, has made clear he is coming to Luxembourg with no new proposals. Eurozone officials are increasingly coming around to the view that no progress is likely and the discussion on Greece is set to be perfunctory.
Although deadlines have come and gone in the crisis, many officials believe a failure to reach a deal on Thursday would take the five-month stand-off to a new, critical phase — with Greece’s bailout expiring at the end of the month. As such, there will barely be enough time to get approval of a new deal in eurozone parliaments — particularly the German Bundestag, which would have to be called back from recess to approve any new deal.
Friday June 19: The morning after
Finance ministers will still be in Luxembourg for a second day of meetings, this time with all 28 countries in attendance. In theory all the actors who need to strike a deal will be in the same place at the same time. But unless there is a drastic change in circumstances — a sudden market panic, for instance, or long lines forming at Greek banks no deal on Thursday means there would be little to discuss on Friday.
If a deal is not reached, eurozone leaders will consider calling an emergency summit of the heads of government from the 19 members of the common currency, according to senior officials. The summit would likely be held on Sunday, although Donald Tusk, the European Council president who would be responsible for convening such a session, would need to announce the gathering shortly after the eurogroup failure.
Sunday June 21: Possible emergency summit
Some officials believe a eurozone summit would be redundant if no deal is reached among finance ministers, since it is those finance ministries that are best equipped to negotiate the substance of any bailout agreement. But other eurozone officials believe Alexis Tsipras, Greek prime minister, wants to strike a deal. He has insisted repeatedly that any agreement must be reached at the highest political levels, not among technocratic negotiators. Being locked in a room with Angela Merkel, German chancellor, and other EU leaders may just the circumstances needed for a meeting of minds.
June 22 onward: Worst-case scenarios
If no agreement can be reached, worst-case scenarios begin to kick in, including capital controls to limit withdrawals from Greek banks and prevent a complete financial meltdown.
If a Greek bank run were to begin, the European Central Bank — which is keeping Greek banks on life support by approving emergency central bank loans to local financial institutions — could be forced to declare them insolvent and withdraw all assistance. Without the emergency loans, Greece’s banks would collapse and the only way to restart them would be creating a new central bank with a new currency.
Capital controls would slow this process significantly, buying both sides more time to negotiate and prevent a Greek exit from the eurozone. But once imposed, capital controls are hard to roll back. Cyprus, which was forced to implement capital controls as part of its bailout two years ago, only lifted its final measures in May. In Iceland, ittook nearly seven years.

June 25: Any other business
This is the date for the beginning of a long-scheduled EU summit. However, the meeting already has a full agenda, including UK prime minister David Cameron’s promised unveiling of his plans for renegotiating Britain’s relationship with the EU. Eurozone officials increasingly believe that by this point it will be too late to salvage a Greek deal.
June 30: Expiration date
The date Greece’s current bailout expires and when it is due to repay €1.5bn in loan repayments to theInternational Monetary Fund. Without an agreement on a list of economic reforms, officials have said there is no hope of extending the programme for a third time, meaning Greece would be without an EU safety net for the first time in five years.
Unless the bailout funds are paid, Mr Tsipras has made clear he will not make the IMF payment. Although technically this is not a default, since IMF rules consider a non-payment “arrears”, Greece would join a motley crew of developing countries — including Somalia, Cuba and Zimbabwe — that have current or former “overdue obligations” to the IMF.
Although credit rating agencies have said that non-payment to the IMF is notformally a default, the ECB would have to decide if it meant Greece was essentially bankrupt. If it was, the collateral used by Greek banks to get their emergency loans — mostly Greek government bonds — would be worthless. That would mean the ECB having to cut off emergency funding, likely forcing Grexit.
July 1: Uncharted territory
If the bailout expires and Greece fails to make the IMF payment — but the ECB decides emergency loans to Greek banks can continue — Greece enters what Mario Draghi, ECB president, recently called “uncharted territory”. An economy hamstrung by capital controls, a government without any cash and a banking system struggling on life support, Greece would essentially begin a drawn-out process of economic suffocation.
Some eurozone officials believe such a state of affairs would lead to such anger towards Mr Tsipras domestically that his government would fall. This could mean either new elections or — more likely — a national unity government, like the one that existed under Lucas Papademos in early 2012, to clean up the mess.
July 20: Drop-dead deadline
This may be the real drop-dead deadline: the date two bonds totalling €3.5bn fall due to the ECB. Although Standard & Poor’s said recently it would not consider a failure to pay these bonds a full default — it said only non-payment on bonds that are held by private creditors constitutes a default in their books — it would be virtually impossible for Greece to survive inside the eurozone if it defaulted on the ECB.

>>> Kythera 4- To be acquired by Allergan for $75/shr in cash and stock; total d

Kythera 4- To be acquired by Allergan for $75/shr in cash and stock; total deal valued around $2.1B; Allergan reiterates FY15 EPS $17.00-18.50 v $17.89e

Allergan and KYTHERA Biopharmaceuticals have entered into a definitive agreement under which Allergan has agreed to acquire KYTHERA in a cash and equity transaction valued at $75 per KYTHERA share, or approximately $2.1 billion, subject to the fulfillment of certain customary conditions summarized below. The fixed-value transaction consideration will be payable 80 percent in cash and 20 percent in new AGN shares issued to KYTHERA shareholders. Allergan's 2015 earnings-per-share forecast provided on May 11, 2015 is unchanged as a result of the acquisition. The acquisition is expected to be breakeven in 2016 and accretive thereafter. The Company remains committed to de-levering to below 3.5x debt to Adjusted EBITDA by the end of the first quarter of 2016.

The acquisition of KYTHERA immediately enhances Allergan's global facial aesthetics portfolio with the addition of KYBELLA(deoxycholic acid) injection, the first and only approved non-surgical treatment for contouring moderate to severe submental fullness, commonly referred to as double chin. KYBELLAwas approved by the U.S. Food and Drug Administration (FDA) on April 29, 2015. KYBELLAinjection is also being developed for potential introduction into international markets; KYTHERA has submitted KYBELLAinjection for regulatory approval in Switzerland, Canada and Australia, with other market applications to follow. The acquisition will also add KYTHERA's development product setipiprant (KYTH-105), a novel compound for the prevention of male pattern baldness, as well as additional early-stage development candidates."

The acquisition of KYTHERA is a strategic investment that strengthens our leading global position in aesthetics and continues to position us for long-term growth," said Brent Saunders, CEO and President of Allergan. "KYBELLAis an exciting new product that offers patients the first and only clinically-proven, non-surgical treatment for submental fullness (excess fat under the chin). As a leader in aesthetics, we know our customers are looking to offer their patients new options beyond traditional facial aesthetics. KYBELLAwill do that while complementing our market leading facial aesthetics portfolio, which includes BOTOX, JUVEDERMXC, JUVEDERM VOLUMAXC, LATISSEand SKINMEDICA. KYBELLAis also a pivotal entry point for expanding the use of facial aesthetic products in men, while KYTHERA's setipiprant (hair-loss) development program can drive additional long-term value."

(BN) *QIHOO 360 GETS A PRELIMINARY NON-BINDING PROPOSAL TO BUY CO.

BN 06/17 10:42 *QIHOO 360 GETS A PRELIMINARY NON-BINDING PROPOSAL $77.00/ADS
BN 06/17 10:41 *QIHOO 360 GETS A PRELIMINARY NON-BINDING PROPOSAL TO BUY CO.
Qihoo 360 Announces Receipt of a Preliminary Non-Binding Proposal to Acquire the Company
2015-06-17 10:41:32.902 GMT

Qihoo 360 Announces Receipt of a Preliminary Non-Binding Proposal to Acquire
the Company

PR Newswire

BEIJING, June 17, 2015

BEIJING, June 17, 2015 /PRNewswire/ -- Qihoo 360 Technology Co. Ltd. ("Qihoo
360" or the "Company") (NYSE: QIHU), a leading Internet company in China,
today announced that its board of directors (the "Board") has received a
preliminary non-binding proposal letter, dated June 17, 2015, from Mr. Hongyi
Zhou, chairman and chief executive officer of the Company, CITIC Securities
Co. Ltd. or its affiliates, Golden Brick Capital Private Equity Fund I L.P.,
China Renaissance Holdings Limited or its affiliates and Sequoia Capital China
I, L.P. and/or its affiliates, to acquire all of the outstanding Class A and
Class B ordinary shares of the Company not owned by them or their affiliates,
including Class A ordinary shares represented by American depositary shares
(the "ADSs", each two representing three Class A ordinary shares), for $51.33
in cash per Class A or Class B ordinary share, or $77.00 in cash per ADS. A
copy of the proposal letter is attached hereto as Exhibit A.

The Board intends to form a special committee consisting of independent
directors to consider the proposal. The Board expects that the special
committee will retain independent advisors, including independent financial
and legal advisors, to assist it in this process.

The Board cautions the Company's shareholders and others considering trading
the Company's securities that the Board has just received the proposal letter
and has not had an opportunity to carefully review and evaluate the proposal
or make any decision with respect to the Company's response to the proposal.
There can be no assurance that any definitive offer will be made, that any
definitive agreement will be executed relating to the proposed transaction or
that this or any other transaction will be approved or consummated. The
Company does not undertake any obligation to provide any updates with respect
to this or any other transaction, except as required under applicable law.

About Qihoo 360

Qihoo 360 Technology Co. Ltd. (NYSE: QIHU) is a leading Internet company in
China. The Company is also the number one provider of Internet and mobile
security products in China as measured by its user base, according to
iResearch. Qihoo 360 also provides users with secure access points to the
Internet via its market leading web browsers and application stores. The
Company has built one of the largest open Internet platforms in China and
monetizes its massive user base primarily through online advertising and
through Internet value-added services on its open platform.

Forward-looking Statements

This press release contains statements of a forward-looking nature. These
statements are made under the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. You can identify these forward-
looking statements by terminology such as "will," "expects," "believes,"
"anticipates," "intends," "estimates" and similar statements. These
forward-looking statements involve known and unknown risks and uncertainties
and are based on current expectations and assumptions about Qihoo 360 and the
proposal. All information provided in this press release is as of the date of
the press release, and Qihoo 360 undertakes no obligation to update any
forward-looking statements to reflect subsequent occurring events or
circumstances, or changes in its expectations, except as may be required by
law. Although Qihoo 360 believes that the expectations expressed in these
forward-looking statements are reasonable, it cannot assure you that its
expectations will turn out to be correct, and investors are cautioned that
actual results may differ materially from the anticipated results. Further
information regarding risks and uncertainties faced by Qihoo 360 is included
in Qihoo 360's filings with the U.S. Securities and Exchange Commission,
including its annual report on Form 20-F dated April 27, 2015.

Qihoo 360 Contact:

For investor and media inquiries, please contact:
In China:
Tel: +86 10-5878-1574
E-mail: ir@360.cn  

In the U.S.:
The Piacente Group, Inc.
Don Markley or Glenn Garmont
Tel: (212) 481-2050
E-mail: qihu@tpg-ir.com

Exhibit A

Preliminary Non-binding Proposal to Acquire Qihoo 360 Technology Co. Ltd.

June 17, 2015
The Board of Directors
Qihoo 360 Technology Co. Ltd.
Building No.2
6 Jiuxianqiao Road, Chaoyang District
Beijing 100015
People's Republic of China

Dear Members of the Board of Directors,

We, Hongyi Zhou, chairman and chief executive officer of Qihoo 360 Technology
Co. Ltd. (the "Company"), CITIC Securities Co. Ltd. or its affiliates, Golden
Brick Capital Private Equity Fund I L.P., China Renaissance Holdings Limited
or its affiliates and Sequoia Capital China I, L.P., and/or its affiliates
(together with chairman Zhou, the "Consortium Members"), are pleased to submit
this preliminary non-binding proposal (the "Proposal") to acquire all of the
outstanding Class A and Class B ordinary shares of the Company that are not
already owned by us on the principal terms and conditions described in this
letter (the "Transaction"). 

We believe that our Proposal provides a very attractive opportunity to the
Company's shareholders. Our Proposal represents a premium of 16.6% to the
closing price of the Company's American depositary shares ("ADSs", every two
ADSs representing three Class A ordinary shares) on June 16, 2015 and a
premium of 32.7% to the average closing price of the Company's ADSs during the
last 30 trading days.   

Set forth below are the key terms of our Proposal.

1.  Consortium. The Consortium Members will form an acquisition vehicle for
the purpose of implementing the Transaction. Please also note that the
Consortium Members who are shareholders are currently interested only in
pursuing the Transaction and are not interested in selling their shares in any
other transaction involving the Company.

2.  Transaction and Purchase Price. We propose to acquire all of the
outstanding Class A and Class B ordinary shares of the Company and ADSs not
already owned by us at a purchase price equal to US$51.33 per Class A and
Class B ordinary share, or US$77.00 per ADS, as the case may be, in cash
through a one-step merger of an acquisition vehicle newly formed by the
Consortium Members with and into the Company.

3.  Financing. We intend to finance the Transaction with a combination of debt
and/or equity capital. Equity financing will be provided by the Consortium
Members, in the form of cash and rollover equity in the Company, and from any
additional equity investor who may be admitted as a Consortium Member. Debt
financing is expected to be provided by loans from third party financial
institutions. We are confident that we can timely secure adequate financing to
consummate the Transaction.

4.  Due Diligence. We believe that we will be in a position to complete
customary due diligence for the Transaction in a timely manner and in parallel
with discussions on definitive agreements.

5.  Definitive Agreements.  We have engaged Kirkland & Ellis International LLP
as our international legal counsel and are prepared to promptly provide and
negotiate definitive agreements for the Transaction. 

6.  Process. We believe that the Transaction will provide superior value to
the Company's public shareholders. We recognize of course that the board of
directors of the Company will evaluate the Transaction independently before it
can make its determination whether to endorse it. Given our involvement in the
Transaction, we would expect that the independent members of the board of
directors will proceed to consider our Proposal and the Transaction. 

7.  Confidentiality. Certain Consortium Members will, as required by law,
promptly file a Schedule 13D with the Securities and Exchange Commission to
disclose this letter. We are sure you will agree, however, that it is in all
of our interests to ensure that we otherwise proceed in a strictly
confidential manner, unless otherwise required by law, until we have executed
definitive agreements or terminated our discussions. 

8.  No Binding Commitment. This Proposal is not a binding offer, agreement or
agreement to make a binding offer or agreement at any point in the future.
This letter is a preliminary indication of interest by the Consortium Members
and does not contain all matters upon which agreement must be reached in order
to consummate the proposed Transaction, nor does it create any binding rights
or obligations in favor of any person. The parties will be bound only upon the
execution of mutually agreeable definitive documentation.

9.  Governing Law. This letter shall be governed by, and construed in
accordance with, the internal laws of the State of New York.

In closing, we would like to express our commitment to working together to
bring this Transaction to a successful and timely conclusion. Should you have
any questions regarding this Proposal, please do not hesitate to contact us.
We look forward to hearing from you.  

Sincerely,

 /s/ Hongyi Zhou
Hongyi Zhou

CITIC Securities Co. Ltd.
By: /s/ Dongming Wang
Name: Dongming Wang

Golden Brick Capital Private Equity Fund I L.P.
By: Golden Brick Capital Fund GP L.P., its general partner
By: Golden Brick Capital Fund GP Ltd., its general partner
By: /s/ Xueliang Chen
Name: Xueliang Chen

China Renaissance Holdings Limited
By: /s/ Fan Bao
Name:  Fan Bao

Sequoia Capital China I, L.P.
By: /s/ Neil Nanpeng Shen
Name: Neil Nanpeng Shen

To view the original version on PR Newswire,
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SOURCE Qihoo 360 Technology Co. Ltd.

-0- Jun/17/2015 10:41 GMT