Posted on: Saturday, June 23, 2001

Bankoh in talks with Westpac

Advertiser Staff and News Services

Westpac Banking Corp. is continuing talks to purchase some of Bank of Hawaii's South Pacific assets, according to brokerage firm Credit Suisse First Boston.

Banking analyst Hugh Maxwell-Davis said Westpac Chief Executive Officer David Morgan confirmed this week that talks were taking place between the two banks.

Maxwell-Davis said in a note to clients that "the acquisition of some Bank of Hawaii South Pacific Assets would complement Westpac's existing Pacific banking operations."

He warned, however, that rival Australian bank, ANZ Banking Group Ltd., could also be interested in the South Pacific holdings.

Westpac's Morgan told analysts he would be "very interested" in additional Bank of Hawaii assets after purchasing majority stakes in the Bank of Tonga and Pacific Commercial Bank of Samoa earlier this year.

Bank of Hawaii's remaining South Pacific assets consist of investments in Banque de Tahiti in French Polynesia and Bank of Hawaii-Nouvelle Caledonie in New Caledonia. It also has interests in Papua New Guinea, Vanuatu, Fiji and American Samoa.

In April, Bank of Hawaii's parent company, Pacific Century Financial Corp., said it would divest its interests in its South Pacific operations, with the exception of American Samoa.

Bank of Hawaii officials declined Thursday to comment on potential buyers.