ECONOMY

Athens bourse suspends trading in Piraeus Bank shares to allow for reverse split

Trading in Piraeus Bank shares on the Athens stock exchange was suspended on Wednesday to allow for a reverse split.

Piraeus will issue new stock to plug a 7.33 billion-euro capital hole, aiming to raise at least 10 percent from private investors to retain management control.

Piraeus will launch a 35.6-for-1 rights issue at 1.7 euros a share, adjusted for a 1-for-10 reverse share split, to raise up to 6.94 billion euros. Another 400 million euros will be raised via a private share placement.

Rights will trade from June 11 to June 18 and the subscription period for the offering will run from June 11 to June 25.