Westpac sinks Lloyds takeover
Saturday 20 April 1996
Westpac's last-minute takeover of Trust Bank, which stunned analysts, will create New Zealand's largest banking group.
The move is a severe setback to the ambitions of Lloyds TSB in that region.
The Lloyds takeover of Trust Bank would itself have have created New Zealand's largest bank.
The announcement that it has been pipped at the post by Westpac may now lead Lloyds to dispose of its assets in New Zealand, some banking analysts said yesterday.
However, the blow may also lead to Lloyds turning its sights firmly back on the UK market and could even lead to a further acquisition in this country, possibly financed by a disposal.
Trust Bank said that under the agreement with Westpac, its shareholders would receive NZ$2.92 for each of its current shares, or one Westpac share plus cash for every four Trust Bank shares. Trust Bank will also pay a bonus of seven cents a share, worth a total of NZ$31.3m, to shareholders.
Westpac managing director Bob Joss said that some job losses and branch closures within the combined operation were inevitable. The two banks employ 7,000 full-time staff in New Zealand.
Harry Price, head of Westpac's operations in New Zealand, will run the combined bank. He said: "It is inevitable there will be some branch closures, redeployment of staff and some redundancies. There are 100 or more places where we are over the road from each other in terms of banking operations."
But he expected many of the cuts to come out of non-replacement of staff who leave. Attrition alone should be enough, he added.
- 2 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 4 Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
Amber Peat: Body found in search for missing 13-year-old who ran away after argument with her parents
California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
Sepp Blatter resigns: FBI are investigating outgoing Fifa president, claims report
Alton Towers crash: Four guests seriously injured as Smiler ride carriages collide
Charles Kennedy dead: A guy once asked the Lib Dem leader who his favourite Muppet was and his letter response was wonderful
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...