Oct
7
Eurobank and National Bank of Greece To Swap Shares
Posted by: kylechan | October 7, 2012 | Leave a Comment
Headquarters of National Bank of Greece
As of October 5th, two of Greece’s largest bank firms, National Bank of Greece (NBG) and Eurobank (EFG) have announced their decision to merge with one another. This comes amass the unsettled crisis that have been occurring within Greece. This move is used as a common strategy for firms facing financial problems. In this case, both banks have decided to merge in the hopes of gaining more European market share through increased capital. The merge will also allow the emergent bank to compete more easily against other bigger European banks such as Deutsche Bank (DB) and BNP Paribas (BNP). This long term strategy is truly meant to increase total assets, capital and power. Evidently the share price of both banks have increased recently due to the merger talks; and analysts believe that the merge will benefit both firms and as a result, increase the Time Value Money of both firms.
Do you think the merge is good for the company?
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Georgiopoulos, George, and Lefteris Papadimas. “Greece’s NBG Offers to Buy Eurobank in Share Swap.” Reuters. Thomson Reuters, 05 Oct. 2012. Web. 07 Oct. 2012. <http://www.reuters.com/article/2012/10/05/us-nbg-eurobank-idUSBRE89408I20121005>.