National Bank of Greece ADR (fka NBGGY)

[Jester_Vandalay]

Greece's NBG Says Alpha Bid Viewed Positively


ATHENS (Dow Jones)--Greece's largest lender, National Bank of Greece SA (NBG), said Monday that its takeover bid for smaller peer Alpha Bank SA (ALPHA.AT) will be seen positively by the market despite its rejection.

NBG Friday announced a EUR2.9 billion all-share offer for its smaller rival, but Alpha's board unanimously rejected the offer, citing the "uncertainties of the current environment" and calling the terms less than "beneficial" for shareholders.

"We were surprised by Alpha's management negative response to our friendly offer but we are confident the market views the bid very positively despite its rejection," NBG Chief Executive Apostolos Tamvakakis said on an investor conference call.

NBG management wanted to present the deal directly to investors on the call. They stopped short of saying whether they would improve the terms of the deal, relying instead on the market and shareholders to exert pressure on Alpha's board to reconsider the offer.

Market watchers believe that NBG won't unilaterally sweeten the offer unless Alpha Bank comes back to the table in good faith. Negotiations could then take place on additional governance benefits and the value of any synergies.

The market reaction Monday suggests investors clearly do not believe that the rejection killed off a deal. At 0945 GMT, Alpha shares were up 13.3% at EUR5.423, incorporating the takeover premium, and NBG shares were up +2.1% at EUR7.73, both in very heavy trade. Meanwhile, the Athens general index was flat at 1,717.4.

"We believe our proposal is very beneficial to Alpha shareholders and we are grateful for the encouragement of our shareholders as well as the wider market for our bid," Tamvakakis added.

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