PNB chief upbeat on merger with Allied Bank by 2010

Written by Erik de la Cruz / Reporter

[BUSINESSMIRROR]LUCIO Tan-controlled Philippine National Bank (PNB) is hopeful its planned merger with Allied Banking Corp. will be completed by the second half of 2010, and still expects the union to catapult it toward becoming the fourth-largest local financial institution.

PNB, the fifth-largest in assets among the 38 commercial and universal banks in the Philippines, is more upbeat about the possibility of a merger given that legal issues preventing it from taking over Allied Bank, which is also owned by Tan, are now being addressed.

The merger was supposed to have been completed by the middle of this year, but was delayed because of the need to comply with US banking regulations requiring Allied Bank to divest its 28-percent equity share in California-based Oceanic Bank prior to merger.

“We’re targeting really middle of next year [to complete the share sale], after which we will be able to effect the merger,” PNB president and chief executive officer Omar Byron Mier said on Saturday.

In an interview with the BusinessMirror after a symposium organized by the University of the Philippines College of Business Administration (UPCBA) Student Council, Mier said at least two investment banks hired by Allied Bank for the sale were already in talks with potential investors.

He and other UPCBA outstanding alumni were invited as speakers at the symposium held at the UP-Ayala Land TechnoHub in Quezon City.

“I think the owner [Allied Bank] is also looking at other private investors. We’re hoping [the sale will be completed] between the first and second quarters and finally merge not later than 2010. We’re really eager to merge,” he said. Read More.

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