6 - 12 April 2000

No comment from HSBC (Malta) over CCF acquisition

by David Kelleher

HSBC (Malta) would not comment on the effect of the acquisition by HSBC of Credit Commercial de France on the local banking sector and Lombard Bank plc.

CCF, which was bought over the weekend by HSBC in a friendly US$10bn bid, has a 21.33 per cent shareholding in Lombard Bank plc, a direct competitor to HSBC in Malta.

The question that arises is whether it makes sense for HSBC to maintain a minority shareholding in Lombard Bank, with which it is already competing. Secondly, does HSBC plan to either sell off its 21.33 per cent shareholding in the bank or will it increase this percentage to one of a majority shareholding?

Contacted by The Malta Business Weekly, the Chief Executive Officer of HSBC (Malta), Tom Robson, would not comment on the merger or what HSBC will be doing with its shareholding in Lombard Bank.

"No comment," this newspaper was told.

However, analysts close to the banking sector said that the next six months could see some changes in the local banking scene as a result of this latest acquisition.