The Minister for Finance, Mr McCreevy, has called top management of ACC Bank to a meeting at the Department today, amid speculation that he may ask them to begin discussion with TSB Bank on a possible merger of the two operations.
At a meeting last week between the Minister and TSB chief executive Mr Harry Lorton, the subject of ACC Bank was raised following the submission by the unions at ACC on the future of the State-owned bank, according to a spokesman for TSB. The unions argued in favour of the merger of ACC with TSB and the flotation of the merged operation, with the Government retaining a golden share.
Mr Lorton was not available for comment yesterday. But the spokesman confirmed that TSB had indicated to Mr McCreevy it was prepared to "explore" the merger proposal. The issue came up as part of the discussion given the union submission, he said.
But the spokesman insisted TSB "has not spoken to ACC or anyone connected to ACC". The issue is sensitive, given the clear preference of ACC board and management for the sale of the bank or a stake in the bank to an international partner and following TSB's failed high profile attempt to allow National Australia Bank to take over TSB some years ago.
The TSB spokesman drew attention yesterday to the fact that at the end of the day it would be the Minister who will decide the best future option for ACC Bank. TSB has been anxious to expand for some time and ACC would make a good fit. TSB has a large personal customer base with 80 branches while ACC has grown strong and now has 50 branches. But bank sources said there could be an overlap of about 30 branches.
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