ACC committee to study ownership issues

Management and unions at ACCBank have agreed to set up a joint internal committee to consider the various "criteria to be used in respect of any change of ownership". Meanwhile, arrangements for the sale by tender of ICC Bank are well advanced and are expected to be completed within weeks.

While the move at ACC could be seen as an attempt to find some common ground between the parties who differ fundamentally on the future direction of the bank, union sources were adamant yesterday they had given no commitment to discuss options other than the merger of ACC with the TSB Bank.

But one union source suggested the TSB option could be compared with other options against the criteria established.

A decision by the Minister for Finance, Mr McCreevy, on a sale or merger of ACCBank has been delayed because of the stand-off between management and unions on the future options for the State-owned bank. Mr McCreevy is expected to await the outcome of the committee discussions before he makes a decision on the future of ACC. A decision is not now expected before the autumn.

The unions, representing about 400 of ACC's staff of more than 550 - ATGWU, SIPTU and MSF - want the bank to be merged with TSB Bank, with the merged institution to be floated on the stock market. The ACC board and management want the Minister to sell a stake in the bank to a strategic foreign partner. Management and the unions at ACC will meet on August 5th to decide membership of the committee and other issues. An early State sell-off of ICC Bank is now more likely. The ICC board and management want Mr McCreevy to approve the sale of all or a significant part of the bank to an acquirer which would facilitate its expansion and development. The MSF union has suggested the Government retains ownership of the bank and invests £40 million over four years. But in the event of a sell-off, employees want a 5 per cent stake with the option to acquire an additional 9 per cent.