Alpha to Acquire EFG Eurobank to Create Biggest Greek Lender

Alpha Bank SA, Greece’s third-largest lender, will buy EFG Eurobank Ergasias SA and increase capital by as much as 3.9 billion euros ($5.7 billion) to ride out a deepening recession and the country’s sovereign debt crisis.

Alpha will offer Eurobank investors five new shares for each seven they hold, or 0.714 Alpha shares for each Eurobank share, according to a statement from the banks in Athens today. That values the deal at about 750 million euros, according to Bloomberg calculations based on Aug. 26 closing prices.