Alpha, Eurobank shareholders clear merger deal

Shareholders of Greece's Alpha Bank and Eurobank approved on Tuesday a plan to merge the two lenders in an attempt to protect them from the fallout of the country's debt crisis.
Greece's second- and third biggest bank respectively, Eurobank and Alpha agreed in August to pool forces to create the country's biggest bank. Qatar will inject capital into the venture to become its single biggest shareholder with a 17% stake.
Most of the two banks' shareholders who gathered in separate meetings in Athens consented to the deal, the two companies said in statements.
The merged entity will be called Alpha Eurobank.
Battered by deposit outflows, sovereign debt downgrades and rising loan impairments with the economy in its fourth straight year of recession, Greek banks have been urged to explore tie-ups in hopes of regaining access to wholesale funding markets.
A planned 50% writedown on Greek government bond portfolios agreed by the EU last month is adding to lenders' woes, forcing them to resort to a state-run capital support fund if they fail to raise sufficient private funds.
Greek bank shares have lost 73% in the year to date, battered by the country's debt crisis. They have underperformed the broader Greek market which has shed 46%.