THE chairman and former chief executive of the Bank of Montreal, Mr Matthew Barrett, has been asked to chair the non-statutory board which will oversee the merger of ACC Bank and TSB Bank and the simultaneous flotation of the merged entity.
Mr Barrett (54), who resigned as chief executive of the Canadian bank last month and is to retire as chairman later this year, is expected to announce his acceptance of the offer in the near future. Mr Barrett grew up in Kells, Co Meath, but has lived in Canada for most of his adult life. He was chief executive of the Bank of Montreal for ten years.
It is likely he will stay on a chairman of the new entity after its floatation, though this could not be confirmed last night.
The Government approved the merger of the two banks last month. The merger and flotation have to occur simultaneously because of the complex legal structure of TSB. The process is not expected to be completed until the middle of next year.
The Bank of Montreal is Canada's third largest financial institution. Mr Barrett rose through the ranks to become chief executive in 1989. During the past ten years the bank has produced record profits and tripled in market value. During the period Mr Barrett became one of Canada's highest paid executives and is understood to own stock options worth about £12 million (#15.2 million).
However, last year a proposed merger of the Bank of Montreal and the larger Royal Bank of Canada was blocked by the Canadian government.
Mr Barrett has a high media profile in Canada and is described as less conventional than most of his colleagues in the financial sector. He is said to have a wide range of interests and to be self-educated in a wide range of subjects.
He is associated with the promotion of women, minorities and the disabled within his bank. He is younger than his counterparts in other top Canadian banks.
The merger of TSB Bank and ACC Bank will result in a bank with total assets of £4 billion which on current market levels could have a market capitalisation of about £500 million.
