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 meeting for Oct. 30, seeking a green light for its proposed acquisition of Eurobank via a share swap.

Greek banks are under pressure to merge after suffering steep losses from the country's debt restructuring, heavy withdrawals and rising bad loans, but short of cash they have no option but to swap shares in order to merge.

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

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

"The share capital increase is necessary for NBG to acquire Eurobank," an NBG official told Reuters on condition of anonymity.

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

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

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

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Keywords: GREECE NBG/