UPDATE 2-Greece's Piraeus Bank, Proton cancel share swap

* Piraeus, Proton agree to cancel share swap * Proton says will take part in government rescue plan * Emporiki will not participate in rescue plan

(Adds Emporiki Bank statement, details)

ATHENS Oct 23 (Reuters) - Greek lenders Piraeus Bank (BOPr.AT) and Proton Bank (PRBr.AT) said their boards had agreed to cancel a share swap agreement, after Proton said it would take part in a government bank rescue plan.

"Piraeus Bank's board announces it has accepted Proton Bank's request ... and signed an agreement to cancel the buyout agreement," Piraeus Bank said in a stock exchange filing on Thursday.

Last week Piraeus, Greece's fourth-largest lender, said it had reached an agreement with Proton's main shareholders to buy a 26.98 percent stake in the small lender in a share swap.

"Proton's board decided to seek to take part in the (government) plan," Proton said in a filing. "The bank will continue to seek a strategic partner at a more suitable time."

Greece's largest banks agreed to a 28 billion euro ($36 billion) rescue plan after the government clarified the terms of the scheme, the finance ministry said late on Wednesday. Bank officials said later banks were given three months to participate in the plan. [ID:nN22389681]

Greece's fifth-largest lender Emporiki Bank CBGr.AT, majority owned by France's Credit Agricole (CAGR.PA), said on Thursday it would not take part in the scheme as its parent was already participating in the French government's plan.

"Given that ... the Credit Agricole group has chosen to partially take up the French government's scheme ... Emporiki will not need to take up the Greek government's measures," Emporiki said in a statement.

Credit Agricole (CAGR.PA) owns 73 percent of Emporiki.

Under the Greek plan, the state can guarantee capital market loans and buy preferred shares in banks to boost their capital while setting a ceiling on executive pay.

"This is clearly a liquidity issue ... It looks like (Proton) chose to take part in the government's rescue plan as soon as it was made clear it was eligible to do so," National/P&K Securities analyst Panagiotis Kladis said.

Piraeus shares were down 2.6 percent at 9.04 euros a share in early trade on the Athens stock exchange, while Proton shares were 6.3 percent higher at 1.35 euros. Emporiki shares were down 3.8 percent at 7.06 euros at 08:40 GMT. (Reporting by George Hatzidakis; Additional reporting Tatiana Fragou; Editing by Paul Bolding)