BANK of Scotland shareholders signalled to their board yesterday that they believed the bank's attempted link-up with Pat Robertson, the extreme right-wing US television evangelist, had helped bring about its loss of independence.
Sir Jack Shaw, the bank's low-profile governor, waxed lyrical about the benefits of its proposed #28bn merger with the larger Halifax at its annual meeting in Edinburgh.
But the spectre of Robertson, whose inflammatory comments about homosexuals in Scotland two years ago provoked public fury and forced the bank to abort its direct banking venture with him before it started, returned to haunt an easily-irritated Sir Jack.
Robertson described Scotland as a ''dark land'', and added that ''in Scotland, you can't believe how strong the homosexuals are''.
James Thorburn, a private investor from London, earned applause from some shareholders for contending that Bank of
Scotland was in fact being taken over rather than merging, and blaming the Pat Robertson fiasco for putting it on the back foot.
Thorburn told Sir Jack: ''I am astounded there isn't more opposition to this proposed merger. The reality is that the Bank of Scotland is going to lose its
independence after 300 years.
''What it is getting in place of its independence is a starring role as the backside of a pantomime horse called HBOS.
''The bank is going to be
dancing and wagging its tail to the tune of the Halifax.''
He added: ''We have a board of directors who do not have the bottle to keep the bank independ-ent. We were not able to stand
up to Pat Robertson. It was a ludicrous episode. It made you look very foolish.''
Thorburn contended that the bank's response had been, rather than stand up to Robertson, to ''pay him off''.
Sir Jack retorted: ''I refute entirely your proposition this bank is being sold to the Halifax.''
He said Pat Robertson was ''history'' and added: ''It is
certainly irresponsible and in-accurate to say this bank didn't stand up to Pat Robertson.''
Sir Jack added: ''The Bank of Scotland's so-called independ-ence is worth nothing if it marks a decline.''
But he rushed to add that the bank was ''not in anything like decline''.
Joan Campbell, a shareholder who has lived in the US, told the board: ''Pat Robertson is somewhat fanatical. I feel this is what has happened to Bank of
Scotland to bring it down - to put religion and business together, which you do not do.''
She added: ''We (private shareholders) may be little people but without us you are nothing.''
Once again Mary Mackenzie, a veteran of annual meetings, did not miss the board and hit the wall.
She declared: ''It is absolutely essential that the embarrassingly backward board realises that shareholders expect several competent women on the non-executive board and on the future new company.''
Highlighting the number of responsible, knowledgeable and qualified women in universities, business and commerce, she urged the board to ''please stop this male chauvinistic pig attitude''.
Shareholder Martin Simons, who described Halifax as merely a ''Yorkshire-based building
society'', also took exception to high fees paid by Bank of Scotland to merchant banking advisers in efforts to line up a merger.
The former Cadbury and ICI employee, who worked with City firm Morgan Grenfell, declared: ''I do believe the investment banks - unfortunately many
foreign-controlled - are grazing on British industry and
commerce.
''I do not use the word grazing in the sense of an Ayrshire cow ruminating in the fields of
Scotland. I am referring to outrageous advisory fees which I, as a proprietor, deeply resent.''
Sir Jack paid tribute to the retiring Gavin Masterton, who rose to the position of managing director and treasurer during his 44-year career with the bank. He was credited by the governor with sowing the seeds of the
successful corporate banking division and other innovations.
Shareholder John Cruickshank asked Sir Jack if he were ''to be thrown on the scrapheap'' as a result of the HBOS merger. Sir Jack confirmed he would ''retire belatedly'' assuming the deal were concluded.
He hinted at higher dividends after a merger, indicating Halifax's ''rather more liberal distribution policy'' would hold sway.
Sir Jack hammered home the importance of an Edinburgh headquarters to the enlarged HBOS - considering it a
''magnet for talent''.
In stark contrast to comments in 1997 from devolution-sceptic Sir Bruce Pattullo - a long-time governor who attended yesterday's meeting - Sir Jack even acknowledged a Scottish Parliament could be ''potentially an aid'' to strengthening the business environment.
Sir Jack attempted to prevent potentially awkward questions by saying the meeting was ''not the time or place to raise personal grievances or individual concerns'' relating to dealings with the bank. This did not stop Clive Murray, a financial adviser from Elgin, who was warned by Sir Jack, when he asked for the microphone for a second time: ''If you are going to make a
comment about your clients, I am afraid I won't entertain it.''
Peter Burt, Bank of Scotland's chief executive, signalled afterwards that he could relinquish his executive deputy chairman post within HBOS in about a year's time if integration went well. The plan is he would then become part-time, deputy chairman.
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