Piraeus Bank seeks stake in Greece’s state-controlled ATEbank, Hellenic Postbank

Piraeus Bank seeks stake in Greek state banks

ATHENS, Greece — Greece’s private Piraeus Bank on Thursday said it is offering to buy stakes in state-controlled ATEbank and Hellenic Postbank from the government for €701 million ($890.5 million).

CEO Michalis Sallas says the bank is bidding to acquire 77.3 percent of ATEBank and 33 percent of Postbank. There was no immediate reaction from the government.

The move follows public statements by government officials that Greek banks are likely to merge due to the country’s acute financial crisis.

Finance Minister George Papaconstantinou, speaking in parliament Wednesday, said there was an “urgent need” for Greek banks to consider mergers. The center-left government is also seeking to sell off state assets as part of a privatization program to aid Greece’s debt-strapped economy.

Ahead of Thursday’s announcement, the Athens Stock Exchange had suspended trading in shares of the three banks.

Sallas said the proposed deal would create the country’s largest banking group with assets worth more than €105 billion ($133.5 billion).

“This is a proposal which we believe will be beneficial to Greek society, the banks themselves, the state and the general atmosphere so that we can escape this atmosphere of gloom,” Sallas said.

“The decision is not mine. It is up to the government to study this proposal and make its decision.”

Piraeus Bank, Postbank and ATEbank are among six Greek lenders on a list of 91 European banks undergoing a stress test by the European Union to probe potential financial vulnerabilities.