The Feilding Star, Oroua & Kiwitea Counties Gazette. Published Daily. WEDNESDAY, SEPT. 25, 1895. BANK AMALGAMATION DOUBTFUL.

Feilding Star, Volume XVII, Issue 75, 25 September 1895, Page 2

The Feilding Star, Oroua & Kiwitea Counties Gazette. Published Daily. WEDNESDAY, SEPT. 25, 1895. BANK AMALGAMATION DOUBTFUL.

♦ It would appear that the amalgamation of the Bank of New Zealand and the Colonial Bank is not likely to be an accomplished fact for some. time. The directors of the Bank of New Zealand (says the Wellington correspondent of the Hawkes Bay Herald) insist that none but assets of unquestionable value and nnassailably sound accounts should be taken over, together with such business premises as could be turned to profitable account by the State-aided institution, and that after this the value of the goodwill of the vendor company should be mutually agreed. This would mean that the Bank of New Zealand would not assume the liability of the Colonial Bank to its shareholders, which is L 2 per share paid up on 200,000 shares, but as against this there would bp to credit the amount of the agreed upo>& value of the goodwill of the business. Further, such of the assets of the vendor bank, in the nature of realty, stocks, or advances as are not of a readily realisable character, would not tinder such an agreement be taken over, and to dispose of those ajad w;nd up the business of the concern, it woal.d necessarily go into voluntary liquidation. In plaja phrase it is understood that the direcjtprg of the Bank of New Zealand decline pertain accounts, reject certain assets, a.nd will not consider a valuation of the share capital, but are prepared to pay a fair value for the goodwill. On the other side there |s gljeged to be much difference of opinion a# tp the assets and current accounts thji/t be taken over by the Bank of New-Ze^an.d, while some of tho directors of the Colonial Bank are said to appraise their share stock as high a« LI 17s 6d pc« share, which is 2s 6d below par value, while their market value today may be put &£ LI. It is said the prospects of an agreeiaenii being arrived at arc tho reverse of roseate, £bp vendor company liaTinfi d#*»e<J M? te?s proposed by

the Bank of New Zealand and at the same time made a counter offer with an intimation that if it is not accepted today (Wednesday) negociations will be broken off. A majority of the directors of the Colonial Bank are not by any means anxious that the institution they govern should be effaced, and that they have the strongest conviction of its assured future prosperity, and will be gratified at disagreement rather than agreement.