When Giants Clash

Once again, it was high noon in Athens. Once again, the big shoot-up paired off two old adversaries, Aristotle Onassis and Stavros Niarchos. For the past dozen years, they have clashed over business deals with almost the same fervor that they seek to outdo each other in their personal lives. The spoils have been about equally divided. Niarchos, whose estimated wealth is just under $500 million, won the license to run the country's first oil refinery and vast shipyards. Onassis, who is worth just over $500 million, got the national airline concession.

The latest feud began when Greece's ruling generals early last year offered another refinery concession to whichever bidder proposed to finance and build the most additional industry to go with it. At first Onassis beat out Niarchos with a proposal for a $400 million complex containing the refinery as well as an alumina works, a thermoelectric plant, shipyards and many projects to attract tourists. Altogether, that represented the largest industrial investment in Greek history.

Two weeks ago Niarchos counterattacked. A spokesman announced that he was offering the Greek government an investment of $500 million in return for the new refinery concession. Since this topped Onassis' bid by $100 million, the government was delighted. The Economic Coordination Minister, Nicholas Makarezos, declared: "This contest is all for the good of the nation. It means the refinery will be awarded under the best possible terms."

Kiddie Talk. With that, Onassis howled, and Premier George Papadopoulos hurried back to Athens from a tour of northern Greece. After conferences among government ministers, Makarezos mysteriously retracted. His ministry confirmed that Onassis was still the victor. Onassis celebrated at a spirited press conference. He contended that his offer, including some projects for the more distant future, was really worth $550 million. Apparently, Onassis won out because he agreed under pressure last week to put up a sizable cash guarantee that he would actually complete the projects. With biting sarcasm, he poked at Niarchos—without ever mentioning his name—for spending so much time at his chalet in the Swiss Alps and for announcing his offers through a young nephew.

Niarchos responded from Switzerland. He accused Onassis of trying to overcharge the Greek government by as much as $190 million over the next ten years for transporting oil in his tankers. "We are wondering why such a huge gift is made to our competitors," said Niarchos. Later, when Onassis was asked if he would ever join with Niarchos in a Greek project, he replied: "Don't you think that that is a bad-taste joke?"