Hellenic Postbank to absorb TBank

The boards of directors of Hellenic Postbank (TT) and its ailing TBank affiliate announced on Friday that they had approved the draft merger agreement for the absorption of the latter by the former.

The reference date of their merger balance sheets was set as March 31 2011.

Under the proposed deal, which will need shareholder approval, TT will absorb TBank, exchanging one of its shares for every 50 T Bank shares.

TT owns about a third of TBank, which is worth about 14.5 million euros on the Athens stock exchange. The number of shares held by the existing shareholders of Hellenic Postbank will remain unchanged.

Hellenic Postbank, which is about 34 percent state owned and has a current market value of 824 million euros, is on a list of state assets the government aims to privatize by 2015 with the aim of raising 50 billion euros.

The government has called on banks to investigate possible alliances to cope with the repercussions of an unprecedented debt crisis.