STOCKS NEWS EUROPE-Greece's Eurobank up on merger rumours

Shares in Greece's third-biggest lender Eurobank jump 7.3 percent after media reports that it is in talks with National Bank over a merger that would create the country's biggest lender.

"Rumours about the merger of the two banks are driving their shares up," says Manos Hatzidakis, analyst at Beta Securities. "In such cases the smaller of the two companies is bolstered."

Shares in National Bank rise 5 percent, also outperforming a 1.7 percent increase on the broad ATG index .

Greek banks are under pressure to consolidate to survive a crisis that has left them relying on their central bank for liquidity.

NBG and Eurobank did not immediately respond to requests for comment from Reuters.

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