Piraeus Bank to absorb Panellinia

Piraeus Bank has agreed to absorb the healthy part of small cooperative lender Panellinia after it failed to plug a capital gap, two banking sources told Reuters on Friday.

“The deal has closed. Piraeus agreed to take over the healthy part of Panellinia,” one of the bankers said, declining to be named.

Panellinia, whose shareholders include German cooperative lender DZ Bank, has not found investors to plug a capital need of about 170 million euros to bring its capital adequacy in line with regulatory requirements.

Panellinia, with assets of 749 million euros, deposits of 514 million and equity capital of 50 million, runs a network of 26 branches.