BANK MERGER PROPOSED

Chronicle (Levin), 21 February 1947, Page 7

BANK MERGER PROPOSED

WELLINGTON, Feb. 20. The directors of the Bank of Australasia and of L'nion Bank of Auslralia Limited, have agrceil to recommend tu tlicir rcspective sharehohlers 011 a dalc to be notifled as soon as circumstaiices allow, that the two banks should be merged into one instilution on tlie basis that sharehohlers of the liniuii Bank of Australia Limited shall re Ceive one Bank of Australasia Sliare oi £5 paid (with a reserve liabilil'y oi' £5; t'or euch Union Bank of Australia Limited sliare of £5 paid (vvilh a reserve liability of £10). Approval to proceed with the project has been received from the Govcrnments of the Comnionweallh of Australia and Dominion of New Zealand. The directors- have been informed by the capital issues commiUoe in London, that while it niust be understood that tlie committee is not cxpressing any opinion 011 the linancial nierit of ihe scheme from the point of vievv of tlie sharehohlers, it AV.il 1 be piepared to give favourable . consideration to the nec.essary issue of shares Avhen it learns that ihe schemc has been sanclioncd by the sliareholders. Permission will bc sought for the name of the merged institutions to be Australasia atul Union Bank. The directors of both banks state that, in event of tlie proposed amaJ gamation taking piave, it will in no way endangev tho preservation of emoJuments and pension rights of the eontinuity of omploynu-iit of the stafl's.