A Greek prosecutor will probe whether merger talks between the country's top lender National Bank and its smaller
rival Alpha were leaked for stock market speculation, a court official said on Tuesday. NBG made an all-share bid on Feb. 18 for third-largest lender Alpha Bank, which rejected the move saying it was not in its shareholders' interests.
"The prosecutor ordered a preliminary investigation into the possible leak of a possible merger between Alpha and National Bank with a view to profiteering," said the official, who declined to be named.
Alpha and NBG officials were not immediately available for comment.
The Greek bourse suspended trading in both banks' shares on Feb. 18 after rumours of a possible bid caused them to surge. Alpha shares had jumped 6.3 percent, while National Bank gained 2.1 percent.
The investigating prosecutor will look into whether traders profited on confidential information. Gaining more than 100,000 euros from stock market manipulation constitutes a felony under Greek law, the official said. by
by Renee Maltezou
source: Reuters
