Linklaters and Skadden Arps Slate Meagher & Flom are advising on the merger of Greece's second and third largest banks, a tie-up which will create an institution with €147bn in total assets, reports The Am Law Daily.

The merger of Alpha Bank and Eurobank, which comes amid the country's sovereign debt crisis, will make the combined entity the biggest lender in Greece and the largest bank in southeastern Europe.

By combining their operations to create an entity with more than 2,000 branches in 10 countries, the two banks – both of which are based in Athens – are aiming to strengthen their capital position in a tough time for the Greek and European economies.

Linklaters is advising Eurobank on the deal with a team including corporate partners Matthew Middleditch and Michael Sullivan, capital markets partner Nigel Pridmore and competition partner Christian Ahlborn.

Meanwhile, Skadden is serving as international counsel to Alpha Bank with a London-based team led by global transactions co-head Scott Simpson and cross-border M&A partner Lorenzo Corte.

Pantazis Karamanolis, a name partner at Greek firm Karamanolis & Associates, is acting as local co-counsel to Alpha Bank.

Under the terms of the deal, Alpha Bank will absorb Eurobank under Greek merger law, but Eurobank will pay a 27.5% premium for the acquirer's shares. The boards of directors for both banks have approved the merger, which is expected to be completed by mid-December.

The Greek Government recently turned to Cleary Gottlieb Steen & Hamilton international finance partner Lee Buchheit to advise the country on its sovereign debt issues.

The Am Law Daily is a US affiliate title of Legal Week.

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