ACC Bank is to have a new strategic plan, involving a strategic partner, ready in about three months' time, according to its chairperson, Ms Garry Joyce. The preparation of this plan, she said, will involve staff at all levels of the organisation. Staff and unions have been invited to participate in this process. The way forward, she added, is "via consultation, not confrontation".
ACC management had favoured a strategic alliance with a major international group, initially involving the sale of a minority stake. However, the bank's unions had rejected the management proposals and instead opted to recommend to the Minister for Finance, Mr McCreevy, that ACC be merged with TSB and the resulting institution then be floated on the stock market.
The ACC board earlier this week expressed its full confidence in its chief executive, Mr John McCloskey, following weekend reports that he was under pressure to step down because of the dissatisfaction of some senior mangers at the bank. The speculation was described as "unfounded".
Ms Joyce said the board was "at a complete loss why it (the speculation) appeared". However, she noted that the bank had gone through a major rationalisation programme earlier this year. This involved a number of senior staff changes.
The new plan, she said, would look at all the options, including TSB. Mr McCloskey said the bank would look at the best option and that could include TSB. The Minister for Finance yesterday reappointed Mr McCloskey (59), to the board for another term of five years. And the board has reconfirmed him as chief executive.
The Minister's representative at yesterday's annual general meeting said any proposals on the bank's future should be "open, transparent, and non-discriminatory". All options are to be looked at, including the sale of up to 100 per cent of the bank. Ms Joyce noted that a change in the ownership of ACC had been mooted for almost a decade. Asked why something was not done then, Mr McCloskey said the bank at that stage was steeped in debt and totally tied to the agriculture sector. That has since changed.
Ms Joyce noted that the lack of decision on ownership was causing the bank serious difficulties in strategic planning when she took the chair in April 1996. Following a meeting with Mr McCreevy, a paper on the view of the board and management was presented to him in September 1997. At a subsequent meeting, Mr McCreevy told ACC that the bank would not remain in State ownership and up to 100 per cent of its equity might be sold. He also asked for the document to be sent to staff.
The result was a separate proposal from the unions. She noted that "we now have a situation where two proposals have been made and there are differences between them". However, she stressed the number of areas where there is agreement. These included an acknowledgment that the bank's future can best be secured through a change of ownership. Both are also in favour of a strategic alliance and both want a subsequent flotation.
