PNB-Allied Bank merger 'coming soon' - official
MANILA, Philippines - The long-awaited but legally challenged merger of Lucio Tan-controlled financial groups Philippine National Bank (PNB) and Allied Banking Corporation is "coming soon."
Listed PNB confirmed to the stock exchange on July 20 the statement of its chairman Florencia Tarriela that the government will give its go signal "this quarter."
"I spoke with the PDIC (Philippine Deposit Insurance Corp.) and they said it's near. It is likely (for us) to get it this quarter," Tarriela was quoted saying.
"The bank is optimistic that the merger of PNB with Allied Banking Corp. is happening soon," PNB told the exchange.
This was based on the expectation that the merger will get the "endorsement/approval of our regulators which we are hoping to obtain this quarter," PNB added.
The merger, which could likely result in lower operating costs that will allow the combined operations to be more aggressive in the competitive industry, has been held back due to the disputed shares in Allied Bank.
The Presidential Commission on Good Government -- the agency tasked to recover assets acquired illegally during the administration of Lucio Tan ally, former President Marcos -- had blocked the PNB-Allied merger due to the disputed shares.
Last June, the Sandiganbayan dismissed the almost 25-year ill-gotten wealth case of the government against Tan, who also has disputed stakes in Fortune Tobacco Corp and Asia Brewery Inc, among others. - Rappler.com