National Bank of Greece (NBG) Bid Rejected by Alpha Bank

The $3.8 billion unsolicited from National Bank of Greece SA (NYSE:NBG) for Alpha Bank SA, was rejected as an inadequate offer by Alpha's board.

National Bank of Greece SA is the largest in the country and Alpha Bank is the third-largest bank in Greece.

When making the offer for Alpha on January 18, National Bank asked for Alpha to give the bid “serious consideration.”

National Bank said the new entity would be much stronger and wouldn't have to rely so much on emergency funding to survive.

National Chairman Vassilis Rapanos said today, “The proposed merger would create the leading bank in Greece, which we believe would be pivotal in supporting the recovery of the Greek economy. I am deeply convinced about the merits of this transaction and I believe it would resonate favorably with shareholders of both banks.”

The rejection by the Alpha board was unanimous, with some industry watchers believing they may change their mind if the offer is sweetened.