Greece's Eurobank EFG, acquired 74.26% in Bulgaria's DZI Bank for EUR 157.76 million. The majority stake was acquired from DZI Insurance and Reinsurance company and Riviera AD. Insurer DZI held 50.09% in DZI Bank directly, as well as 9.8% through its subsidiary Galloway Bulgaria. Riviera owned a 7.45-percent stake in DZI Bank. The remainder of the 74.26% stake was acquired from smaller shareholders. The deal will be paid for with EUR 110 million in cash and 2 million of Eurobank's shares. The Greek bank estimates 100% in DZI Bank to EUR 212 million.

Eurobank also owns Bulgaria's Postbank and is likely to merge the two banks after the deal, according to market sources. The Greek bank announced officially their intentions to merge DZI and Postbank and thus strengthen their positions on the rapidly expanding Bulgarian market.

Eurobank EFG has already submitted a request to Piraeus Bank Bulgaria, which holds the name Eurobank, in order to be able to use it for the future financial institution, the Pari daily learned. Eurobank is currently expanding its operations in Southeastern Europe. The bank has acquired Turkey's Tekfenbank, Ukraine's Universal Bank and has developed own branch network in Poland since the beginning of 2006.

The deal for the acquisition of DZI Bank will be completed upon approval from the regulatory bodies, which is expected to happen by the end of 2006. Financial consultants on the deal are investment bank Morgan Stanley and investment intermediary Bulbrokers.