Alpha Bank Rejects Offer From Rival Greek Bank

Wall Street Journal
February 18, 2011

Alpha Bank SA, Greece's third-largest lender by assets, rejected an unsolicited takeover bid by rival National Bank of Greece SA, saying it wasn't in the interest of shareholders.

National Bank of Greece, already the country's largest lender, had described its offer as friendly, and it followed recent government and central-bank pressure for the country's fragmented banking market to consolidate.

"The board of directors of Alpha Bank convened on 18 February 2011 and, following due consideration of the terms of the proposal, unanimously resolved to reject it, taking into account the uncertainties of the current environment, and the terms of the proposal itself, which were not deemed beneficial to the Alpha Bank shareholders," Alpha Bank said in a statement to the Athens Stock Exchange.

NBG had offered eight of its shares for every 11 shares in Alpha Bank and said it represented an 18.5% premium to Alpha's closing price on Thursday. That would have given it control of 71% of the newly formed company, while Alpha Bank shareholders would have a 29% stake.

"The proposed merger would create the largest bank in Greece, which we believe would be in a position to play a critical role in the effort to restructure the Greek economy," NBG chairman Vasilis Rapanos said at the time.

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