Britain's Abbey National and Bank of Scotland are considering a controversial management structure of an Executive Chairman and Chief Executive for their planned merger, according to a Financial Times report today.
The newspaper said that under the planned structure, Bank of Scotland Chief Executive Peter Burt would become Executive Chairman of the combined group, in charge of strategic development and the management of that strategy. Abbey National Chief Executive Ian Harley would keep his position in the combined group, taking control of day-to-day operations. He would also chair the new bank's Management Committee, which would be made up of the top 10 executives from each side.
The Financial Times added that the management structure was not yet definite and could change.
The intervention of Lloyds TSB, Britain's third largest bank, with an indicative bid for Abbey National has put on ice a planned nil-premium merger between Abbey and the Bank of Scotland.
Abbey National has rejected Lloyds' offer, which values the bank at £19 billion. Last week it presented its own plans for a merger with the Scottish bank. An answer is expected in January.
