Unionbank buys ibank

REPORT FROM BUSINESSWORLD Aboitiz-led Union Bank of the Philippines (UnionBank) is buying the controlling stake in International Exchange Bank (iBank) of businessman Ramon Sy. In a letter to the stock exchange, UnionBank said its board of directors had approved the purchase of 67% to 100% of iBank at P42.50 per share. iBank shares were last traded for P39.50 apiece. A. Bayani K. Tan, Corporate Secretary of iBank, told BusinessWorld that in spite of the sale, it would be business as usual for iBank. As of now, nothing has changed. iBank branches will still be operating, he said in a telephone interview, adding that only the stockholders had changed. Mr. Tan said a merger of the two banks would be the most logical result of UnionBanks decision to buy the iBank shares. But before the merger could take effect, UnionBank must make a tender offer or give all iBank stockholders the opportunity to sell their shares at P42.50 per share, he pointed out. Moreover, the merger must also get the nod of regulators, he pointed out. Mr. Tan said negotiations between the two banks were quick. I was informed only on Thrusday and the deal was sealed Friday, he said. Mr. Tan said UnionBank plans to retain iBanks officers. -- M.E.P. Osorio/BusinessWorld