CONFIDENTIAL
of stock market implications) to offer any comment until the
MMC report has been published.
15. There was some press speculation in November about the
introduction of legislation to control bank mergers and takeovers
to replace the present non-statutory arrangements under which
banks are expected to secure the Bank of England's approval
before making a bid. The HKSB is known to have bid for the RBS
against the Bank of England's wishes. Following Ministerial
discussion, the lobby was informed that the Government does not
intend to introduce such legislation.
10215 (1860) 1981
Here 10215
see HKK
16. The statements on banking supervision in Hong Kong made by
the Lord Privy Seal on 18 November were interpreted by some as
an indication of Governmental support for the HKSB bid. However,
HMG takes no position on the commercial merits of either bid though
it accepts that the HKSB should not be discriminated against
merely on grounds of its incorporation in Hong Kong.