UPDATE 1-Greece’s NBG says not looking to sell units

* NBG says not looking to divest stake in subsidiaries

* Also not eyeing a share capital increase

* Not in merger talks with other Greek banks

* Shares up 0.7 percent

(Adds details, background)

ATHENS, July 12 (BestGrowthStock) – Greece’s largest lender National
Bank (NBGr.AT: ) (NBG.N: ) said on Monday it was not looking to sell
stakes in subsidiaries or raise its share capital, dismissing a
press report to that effect.

“National Bank … is informing the investment public that
it is not considering the prospect of a share capital increase,
or the sale of a stake in its subsidiaries. Also, that it is not
in talks with other Greek credit institutions on the prospect of
a merger,” the bank said in a statement.

On Sunday, newspaper To Vima reported that NBG’s management
had considered the sale of a 30 percent stake in Turkish
subsidiary Finansbank (FINBN.IS: ) along with a 1.5 billion euro
($1.9 billion) share capital boost, which would give it the
financial firepower to make an acquisition in the Greek banking
sector.

Promptings by the government and the central bank for Greek
banks to rethink strategy and regroup to better cope with the
debt crisis have fanned speculation of possible mergers and
acquisitions. [ID:nLDE65N1XJ]

NBG acquired Finansbank in 2006, the first Greek lender to
venture into Turkey. National lost money at home in the first
quarter, hurt by a deepening recession and the debt crisis, but
managed to post a small profit at group level thanks to its
Turkish unit. [ID:nLDE64P129]

“NBG has a high capital adequacy and maintaining and
improving it is a strategic priority,” the bank said, adding it
is constantly looking into ways to achieve this goal.

NBG shares, which have shed 46 percent year-to-date, were up
0.7 percent at 9.75 euros by 0924 GMT, slightly outperforming
the broader Greek market (.ATG: )
(Reporting by George Georgiopoulos; Editing by David Holmes)
($1=.7939 Euro)

UPDATE 1-Greece’s NBG says not looking to sell units