National Bank of Greece S.A. Pfd. Series A ADS NBG.P.AWD

Possible dilution of common shares

[Baer1]

There is a buzz about that the recap of Greek banks, which must occur by April of this year, added to the merger with Eurobank (which is in a worse recap position than NBG) will result in massive dilution for NBG common share holders. While there is some dissention about this, the arguments for it seem well supported. I suggest that the risk may outweigh the potential rewards at this point. Personally, I have liquidated my commons and moved the cash into the preferreds. As far as I can tell, the preferred shares will not be seriously affected by the recap, and may, in fact, start producing dividends post recap and merger. Do your own DD! Please share here if you have further info.