THE head of the Birmingham Midshires Building Society was yesterday rumoured as a possible replacement for the ousted Woolwich chief executive Mr Peter Robinson, fuelling speculation of a merger between the two societies.

Mr Mike Jackson was being tipped for the Woolwich job, which was left vacant a week ago after Mr Robinson was forced to resign over allegations of misuse of the society's facilities.

The Woolwich, Britain's third biggest society, needs to find a new chief executive as it moves towards a £3 billion stock market flotation.

However, both societies dismissed yesterday's reports as "pure speculation".A merger between the Woolwich and the Birmingham Midshires would create a combined society with assets of more than £3 billion.