Metrobank, Solidbank firm up merger

Metropolitan Bank and Trust Co. (Metrobank) and Solid Banking Corp. (Solidbank) will thresh out their differences as they hold their first regular board meeting today.

In an interview, Solidbank president Deogracias Vistan said we "would have the first regular board meeting with the six newly-elected members of our board coming in to attend and to participate."

Vistan said both parties are keen on striking a deal despite several stumbling blocks on the two banks' negotiations.

"As far as our management is concerned, we look forward to interacting to two sets of shareholders." But, Vistan declined to discuss details of the recent talks between Metrobank and Solidbank shareholders. "I'm not privy to the progress of their negotiations," he said.

He assured that the operations of Solidbank will not be affected by the delay in the talks between Metrobank and Bank of Nova Scotia (BNS), one of the majority stockholders of Solidbank.

Metrobank bought the 11.7 million shares of Solidbank at a premium of 2.5 times the book value or at P573.6 per share. It cost Metrobank a hefty P6.7 billion to buy the majority stake or 51 percent of the bank. BNS owned about 40 percent of Solidbank.

"These are two shareholders, they are not running the bank, they are providing the policy like any board is expected to provide. So far, I don't see material change," he said.

He also assured that the two parties would try to solve the problem on or before the six-month deadline set by the Bangko Sentral ng Pilipinas (BSP) to merge the two banks.

"In our case, these are two institutions. It is very clear that one likes to sell and the other likes to buy and at some point the strings will meet. I think, there is a good chance that is still very doable it is true that the sooner they come with the meeting of the minds, the better are chances of meeting that mandate," Vistan said.