[2008-05-22]  New twist in Stanbic CFC merger
Industrial Plant (EA) has blamed Stanbic Bank of employing delaying tactics to evade depositing KSh26 billion as security before its proposed merger with CFC bank. The firm made the accusation in reply to an application by Stanbic Bank that is seeking to stop proceedings in a suit that demanded the deposit as a condition for the merger. Advocates Mathew Oseko and Moses Kurgat for the company, said the bank’s application filed on May 15 is geared towards stifling the plaintiffs application so that the intended merger, which their client has questioned, can proceed. They maintain that the proposed transfer of banking business formerly carried out by Stanbic to CFC and then to a new company to be named CFC Stanbic Bank Ltd is in contravention of the Banking Act. Industrial Plant maintains that it has raised an illegality regarding the merger and it should be given a day in court to prove its case. The case will be mentioned before the Milimani Commercial court for directions. The advocates have denied claims that their client is attempting to issue an injunction on the Government and other statutory bodies who approved the merger. Such a claim they say is ‘another smoke screen intended to shield the illegalities that are involved in the merger process’. Stanbic bank moved to court last Monday seeking to stop proceedings in a suit demanding KSh26 billion deposit as security before the merger. The bank had stated that if the process of the merger is interfered with, then the damage to persons involved would be irreparable.
Source: Copyright © 2008 Standard Group