Tuesday, February 22, 2011

National Bank of Greece (NYSE:NBG) Continuing Pursuit of Alpha

National Bank of Greece SA, the nation’s largest lender, said its 2.8 billion-euro ($3.8 billion) bid for Alpha Bank SA, the third-biggest, will be received positively by investors after Alpha spurned the offer.

“The strategic and financial merits of the combination are compelling to both banks and their respective shareholders,” Chief Executive Officer Apostolos Tamvakakis said on a conference call today. “We are confident that the market will receive this proposal positively and express its position accordingly.” He wouldn’t take questions from reporters.

Alpha’s board voted unanimously Feb. 18 to spurn National Bank’s offer of about 5.50 euros in shares. The bid values Alpha at about half its book value, a lower multiple than in the previous four European bank takeovers in Europe of more than $1 billion in the past year, data compiled by Bloomberg show.

Bank of America Corp. (NYSE:BAC) and Morgan Stanley (NYSE:MS) are advising National Bank, while Citigroup Inc. (NYSE:C) and JPMorgan Chase & Co. (NYSE:JPM) are advising Alpha Bank.

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