Greece's NBG to seek shareholder approval for Eurobank bid

ATHENS, Oct 8 (Reuters) - National Bank of Greece ,Greece's largest lender, on Monday called a shareholder meetingfor Oct. 30, seeking a green light for its proposed acquisitionof Eurobank via a share swap.

Greek banks are under pressure to merge after sufferingsteep losses from the country's debt restructuring, heavywithdrawals and rising bad loans, but short of cash they have nooption but to swap shares in order to merge.

Eurobank says it is considering the offer, which NBGannounced last week.

NBG shareholders will be asked to approve a share capitalincrease through the issue of new shares, effectively approvingthe bid for Eurobank.

"The share capital increase is necessary for NBG to acquireEurobank," an NBG official told Reuters on condition ofanonymity.

NBG is offering 58 new shares for every 100 shares ofEurobank. Once the share exchange is completed, NBG shareholderswould own 75 percent of the combined entity, with Eurobankshareholders owning the rest.

In the event that there is no quorum on Oct. 30, the meetingwill be held again on Nov. 12.

(Reporting by Lefteris Papadimas and George Georgiopoulos;Writing by Renee Maltezou; Editing by Leslie Adler)

((renee.maltezou@thomsonreuters.com)(+30 210 3376439)(ReutersMessaging: renee.maltezou.reuters.com@reuters.net))

Keywords: GREECE NBG/

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