Post by
Baer1 on Jan 14, 2013 9:20am
Possible dilution of common shares
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.
Comment by
4loorplay on Mar 12, 2013 7:24am
From what I have been told, this bank or any in EU cant fail. Meaning that it will not be permitted to fail because that will greatly effect the euro in a negative way. What will happen is anyones guess but I tend to think that in the longer run the bank will be propped up to prevent panic and a domino effect of doom.