A merged TSB Bank and ACCBank is preparing to begin trading on the Irish Stock Market on May 2nd 2000.

The Minister for Finance, Mr McCreevy, hopes to have appointed advisers for the merger and flotation process by June and the bank expects to be able to begin a series of investor roadshows next spring.

TSB chief executive Mr Harry Lorton has acknowledged that the next 13 months will be very challenging but is optimistic that the industrial dispute currently under way at ACCBank can be speedily resolved and will not derail the flotation plans. "In any merger there will be misunderstandings on issues. We are at a very delicate stage at the moment, but I am optimistic that it will be resolved quickly within the industrial relations procedures."

Staff at ACCBank's data and computer processing systems have been refusing to co-operate with the merger. Trade union activists have accused Mr Lorton of failing to honour commitments to consult them on the staffing implications of extending the TSB's Unisys/Unibank system to ACC amid fears this would lead to widespread redundancies in this section.

Mr Lorton told The Irish Times there will be no forced redundancies but stated that staff costs within the merged entity will have to be reduced.

"We have already indicated to the unions in both banks that there will be no compulsory redundancies as growth in the bank's business will lead to new opportunities for staff. We have indicated that up to 250 positions may have to go but with a generous severance package and given the high turnover of staff within the industry, we believe this can be achieved," he said.

Meanwhile, the Minister for Finance has announced the non-statutory board of directors to prepare the banks for the flotation and merger.

Mr Matthew Barrett, chairman of the Bank of Montreal, will chair the non-statutory board, which will become the board of the merged bank after the flotation. The other board members are: Mr Billy Attley, former general secretary, SIPTU, Mr Brendan Malone, partner at Malone Power accountants, Mr John McCloskey, chief executive, ACCBank, Mr Padraic O'Connor, former managing director, NCB Stockbrokers, and Mr Padraic White, former managing director of the Industrial Development Agency.

TSB Bank has in turn nominated five of its trustees to the new board. They are Mr Finbarr Golden, Mr Lorton, Mr Barry Sheehan, Mr Bernard Uniacke and Mr Dermot Whelan. Mr Lorton has been elected to the board of ACCBank and Mr Barrett will shortly be appointed to the boards of ACC and TSB. Announcing the appointments yesterday, Mr McCreevy said the merger offers an unique opportunity for both banks. "I am convinced that not only does this provide significant development opportunities for staff, but it will also lead to an enhanced service for customers."

The banks will be collectively known as Newbank, although a brand name under which both will trade will be adopted before the end of the year. Mr Lorton said the banks will begin jointly branding their services and products next year, although the formal merger will not take place until the shares begin to trade.

The board of directors will immediately be turning its attention to the rationalisation of the banks' combined operations, which is at the heart of the stand-off between TSB management and ACC staff. Other issues that will have to be addressed include the branch network. The banks have a combined network of more than 130 branches, with some overlap in certain locations. Mr Lorton said the number of outlets operated by Newbank will have to be reviewed but admitted that in some cases there will be closures.