Taiwan Business Bank's (TBB,
"We do not accept any takeover plans and would go on strike against such actions if the government insists on going ahead," Lin Wan-fu (林萬福), chairman of TBB's industrial union, said in a telephone interview.
TBB employees took the first industrial action in the nation's banking sector in September 2005 and blocked the Ministry of Finance's auction of the government's shares in the bank.
Secretary-General of the Executive Yuan Chen Chin-jun (陳景峻) told the union on Monday that the government had no plan to force Mega Financial to proceed with the takeover of TBB, Lin said.
"Those reports are pure speculation," Lin quoted Chen as saying.
The ministry had earlier told state-controlled Mega Financial to carry on with the acquisition of TBB in order to meet the government's consolidation goal.
Mega Financial, the nation's third-largest financial group, has a more than 13 percent stake in TBB.
The ministry demanded that Mega Financial evaluate three areas -- overall political and economic environment, Mega Financial's internal operational strategies and directions, and TBB's performance -- said a ministry official who refused to be named.
Mega Financial has submitted its evaluation reports to the ministry at least three times. The reports concluded that it would be "inappropriate" for the institutions to merge.
Vice Premier Chiou I-jen (邱義仁) said earlier this month that the government was mulling selling state banks to multinational lenders after President Chen Shui-bian (陳水扁) said it was necessary to resume the second-stage financial reform to push for consolidation of the banking sector.
TBB was reportedly on top of the sale list.
"Our only answer is no. No to a takeover by either a foreign or local lender," Lin said.
The bank's board has said that it expects profits of NT$8.8 billion (US$267.57 million) this year, up from more than NT$1 billion last year.
The union, however, set a goal of NT$10 billion from lending to small and medium-sized enterprises, wealth management and overseas business units, in a bid to demonstrate that TBB can work well on its own, Lin said.
TBB president Jack Huang (黃新吉) said after his inauguration last month that the bank is seeking a partnership with foreign financial institutions only through a partial share sale but would not give up control.
Mega International Commercial Bank's (兆豐國際商銀) labor union released a statement yesterday to say that its members opposed a merger that could not result in synergy and does not abide by market mechanisms.
Chairman of Mega's union, Tsai Chiu-far (蔡秋發), said in a telephone interview yesterday that the National Federation of Bank Employee Unions (銀行員工會全國聯合會) was in contact with opposition parties to urge them to protest what he called the government's reckless consolidation program.
Additional reporting by Jackie Lin
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