NAB still interested in U.K. acquisition

Press, 6 September 1989, Page 40

NAB still interested in U.K. acquisition

By

LEONIE WOOD

NZPA-AAP Melbourne National Australia Bank appears to have cooled its approach to Yorkshire Bank, but said it was still interested in buying a United Kingdom financial institution.

NAB spokesman, Mr Haydn Park, confirmed the bank was keen to buy “something, but it could be anything.” Mr Park also suggested the Yorkshire Bank — the target of an informal approach by the bank some months ago — may have been withdrawn from sale. On Sunday, NAB managing director, Mr Nobby Clark, said he regretted reports last month that the bank had approached directors of the U.K. retailing bank and suggested “something else will happen.” But Mr Park on Monday said nothing has changed and said the situation was now at the same stage where it was last month.

“The passage of time will determine whether or not the owners of Yorkshire will decide to sell, but in the meantime we are back at the status quo,” he said. Broking analysts have pointed to various building societies in the south of

England as likely targets for the NAB, which also owns the Clydesdale and Northern banks in northern England. But Mr Park also dismissed reports of the bank seeking a building society as “pure rumour, all of them rumour.” Yorkshire Bank is jointly owned by Barclays, Pic, Lloyds Bank and National Westminster Bank and Royal Bank of Scotland. When reports of the NAB’s approach first surfaced in London last month, it was suggested the Royal Bank of Scotland was flushing out possible rival suitors for Yorkshire Bank. Meanwhile, NAB has given notice of an extraordinary meeting to approve a change in its dividend plan so that United Kingdom shareholders can receive dividends from a U.K. subsidiary of the bank. Mr Park said the U.K.’s imputation scheme was similar to Australia’s, but U.K. shareholders could not benefit from franked dividends. “We intend to use the U.K. system, since we’re paying U.K. tax, and pass the benefit on to them,” Mr Park said. The extraordinary meeting will be held on September 21 in Melbourne.