UPDATE 1-Portugal's BCP offloads discounted Piraeus shares
* Piraeus stake priced at 1.5 euros a share, 8.5 pct discount
* Stake acquired as part of Millennium BCP restructuring
* BCP shares rise 4.5 pct, Piraeus drops more than 6 pct (Adds details, discount, share prices, Piraeus statement)
LISBON, Oct 30 (Reuters) - Portugal's largest listed bank Millennium BCP placed its 4.64 percent stake in Greece's Piraeus, to comply with conditions on financial aid from international lenders, at an 8.5 percent discount on Wednesday.
BCP last year drew 3 billion euros in convertible bonds from a recapitalisation line from the country's 78-billion-euro EU/IMF bailout and in exchange has to implement a restructuring plan, including some asset sales.
Under its restructuring plan, BCP bought the stake in April for 400 million euros as part of a deal to sell its Greek unit Millennium Bank-Greece, to Piraeus. Greece has been gripped by an even deeper debt and economic crisis than Portugal.
BCP, which has always said the Piraeus stake was non-strategic and slated for sale, said it expected gross proceeds of 494 million euros ($680 million) from the offering and analysts said it would net 174 million.
The accelerated placement, aimed at institutional investors, was launched on Tuesday.
BCP said in a statement on Wednesday it sold 235.29 million ordinary shares in Piraeus at 1.50 euros a share and the same amount of warrants to subscribe for ordinary shares, priced at 0.6 euros per warrant. The warrants were issued by the Hellenic Financial Stability Fund.
BCP said it now holds no Piraeus shares or warrants.
BCP shares rose 4.1 percent by 1010 GMT, while Piraeus fell 6.1 percent to 1.54 euros.
Maria Kanellopoulou, an analyst at Athens-based Euroxx Securities said the sale "removes the stock overhang and increases the free-float of Piraeus". ($1 = 0.7262 euros) (Reporting by Andrei Khalip; Additional reporting George Georgiopoulos in Athens; Editing by Louise Ireland)
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