Greek banks to merge, form nation's biggest lender

AP News
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Posted: Aug 29, 2011 7:33 AM
Greek banks to merge, form nation's biggest lender

Greece's second and third largest lenders, Eurobank and Alpha Bank, have announced plans to merge in order to better withstand the country's acute financial crisis.

The widely anticipated merger, announced Monday, would create Greece's biggest bank, and was immediately welcomed by the country's Socialist government.

The move saw shares surge on the Athens Stock Exchange, with the banking sector up nearly 20 percent, while shares in National Bank of Greece, the country's largest lender, were up 29 percent.