Republic Bank withdraws interest in Barbados bank

Trinidad-based Republic Bank Limited says it will no longer be proceeding with the acquisition of additional shares in Barbados National Bank (BNB) following the breakdown of talks with the Fruendel Stuart government.

"Although the group was satisfied with its existing shareholding in BNB, it had been willing to acquire the additional shares since the government was desirous of selling," said Republic Bank managing director David Dulal-Whiteway in a statement.

Republic Bank already has controlling interest of 65.13 per cent in Barbados National. It was negotiating with Barbados to acquire another 17 million share units.

"Both parties were unable to agree on an appropriate transaction price and, as a result, the group would not be proceeding with the transaction," said Dulal-Whiteway.

Media reports said the Republic Bank was unwilling to offer the Barbados government more than the market value of BDS$5.57 (US$2.78) per share.

Finance Minister Chris Sinckler says the 17 million BNB shares are still up for sale and that Barbados would consider offers from other parties.

- CMC