Mega Financial Holding Co (
The delay resulted from the lengthy review process of the registration of the new bank entity after merger by foreign regulators in the overseas markets, Mega Financial's spokesman Joseph Shieh (
This was the second postponement after Mega Financial first put off the merger date from March 27 to June 26.
Although it would be the surviving entity, ICBC's union has been resisting the merger as it opposes renaming the bank.
Mega Financial's management plans to change the merged banking unit to Mega Commercial Bank Co (
"We are proud of our brand name with a history that dates back more than 100 years," ICBC union chairman Tsai Chiu-far (
The bank was first established under the name Hupu Bank (戶部銀行) in 1904 during the Qing Dynasty. It is the oldest government owned and operated bank in Chinese history.
News of Mega Financial's plan to postpone the merger of its two banking units came on the eve of the financial service provider's annual shareholders' meeting today.
The union plans to mobilize up to 500 employees to hold a demonstration during the annual meeting to protest against the controversial takeover bid by Chinatrust Financial Holding Co (
So far, Chinatrust Financial has acquired a 15.63 percent stake in Mega Financial, while the government controls 22.78 percent.
Chinese Nationalist Party (KMT) legislators said yesterday that Premier Su Tseng-chang (
"If the government secures less seats than those who represent private shareholders do, it means that Su and Lyu failed to fulfill their duty of guarding a national asset," KMT legislative caucus whip Pan Wei-kang (
KMT Legislator Alex Fai (
KMT legislators said they would stage a demonstration outside Mega Financial's annual shareholders' meeting today.
Meanwhile, People First Party Chairman James Soong (宋楚瑜) said yesterday that the party would come up with a motion to topple the Cabinet if the government loses control of the company.
But Democratic Progressive Party Legislator Lin Chung-mo (林重謨) said that if the government was disadvantaged, it is the KMT that should be blamed rather than the government.
"Mega is actually controlled by Chinatrust Financial, whose chairman Jeffrey Koo (
He said that the government had been working hard to persuade Chinatrust Financial from cooperating with other private shareholders.
"It all depends on Chinatrust Financial. If it continues to refuse to back the government, choosing instead to cooperate with private shareholders, and the government fails to obtain the support of all shareholders representing foreign interests, the government will likely lose control of Mega Financial," he said.
The Financial Supervisory Com-mission said yesterday that the commission treated all shareholders equally -- whether they represented private or public interests.
The commission would not intervene unless there was any impropriety involved in the management shakeup, it said.
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