Greek bank to boost capital

City A.M. Reporter
GREECE’S second-largest lender Piraeus Bank will buy Portuguese lender Millennium BCP’s Greek business for €1m as part of consolidation efforts to cope with the debt crisis.

Piraeus’s announcement yesterday sent the bank’s shares up 13 per cent as BCP will take part in its recapitalisation, helping it stay privately run.

Piraeus plans to raise up to €400m in a private share placement and up to €6.94bn from a rights issue to boost its capital base.

Millennium BCP will invest €400m in Piraeus.