HBOS may still buy Northern and National Irish Bank

BANKING sources still insist Halifax Bank of Scotland will end up buying the Northern and National Irish Bank.

Sat, 20 Nov, 2004 - 00:00

Brian O'Mahony, Chief Business Correspondent

National Australia Bank (NAB) last week informed the stock exchange there that efforts to sell the non-core businesses would continue until early January.

Earlier this week HBOS confirmed it had pulled out of the bid process. It was not going back and would have to be approached by NAB if a deal is to be done, sources close to the company said.

Both sides have accused the other of playing politics with the process. The uncertainty has angered the Irish Bank Officials Association (IBOA) whose representatives met NAB’s top representatives for several hours in Dublin yesterday.

Don Price head of the bank’s Irish operations represented NAB while general secretary of IBOA, Larry Broderick led the charge on behalf of his members.

Northern employs 2000 people in the North and NIB roughly 800.

Staff were infuriated by the decision last week of the parent group to end the bonus system for employees while keeping it in place for executive-ranked staff.

An IBOA spokesman said nothing would be said until Monday.