No timeframe set for proposed BPI-PNB Allied Bank merger

MANILA, Philippines - The Bank of Philippine Islands (BPI) does not want to put a timeframe on its “bilateral” discussion with the Philippine National Bank (PNB)-Allied Banking Corp. on the proposed three-way merger, a top BPI official said.

During the awarding ceremony for Management Association of the Philippines’ Man of the Year, BPI president and CEO Aurelio Montinola III confirmed that they are still talking with PNB/Allied.

“Just discussions so there’s nothing to disclose at the moment, everything that has to be spoken has already been spoken about,” he said.

Asked to elaborate on the talk’s timeframe, Montinola said “I think there is a normal timeframe for all discussions. It will proceed on its course and we have to see where it will go. We really don’t know,” he said.

Montinola also said they would like to refer the talks as “bilateral discussions” and they would continue to talk about the proposed merger as long as the other parties are willing.

The BPI chief said while he always insists on organic growth for the bank, they could not pass on opportunity once it arises. “I said it before I personally like organic growth but if opportunity arises we can look at it,” he said.

Earlier, sources from PNB has been saying that the talks with BPI is still a long way to go.

They said their priority now is to merge its operation with Allied Bank. “If ever, it would take time before the BPI-PNB-Allied merger could be consummated. Provided, the Ayalas and Tans agreed to enter into a merger talk, there would be due diligence and I doubt if they could finish it in one quarter. This is a long process,” the sources said.