Search the Internet          Tips  Sites: Finance, Investment

StanChart CEO Rana Talwar quits in style row

Rana Talwar, director and group chief executive of Standard Chartered Plc, has resigned with immediate effect even as media reports in London said that he was "ousted as a result of culture clash".

Indian born Talwar has been replaced by Mervyn Davies, group excutive director since 1997, the bank said in a release in Bombay on Thursday.

Talwar, who has been Standard's chief executive since October 1998, encountered a different management style at Standard to that of his former employer, the United States' Citibank, and this led to disagreements, sources told Reuters.

However, according to a report in Financial Times of London, on Monday, Talwar vehemently denied reports of a rift between him and Patrick Gillam, the bank's chairman. "Let the record speak for itself. How can a board that is divided do as many transforming deals as we have done in the last 18 months?"

Gillam too played down reports that Talwar was in open conflict with him and had lost the confidence of the board."It's nothing to do with his abilities, it's fitting in to a certain style."

Talwar said "I recognise that now is an appropriate time to move on. After working for 33 years in the industry, I look forward to taking a break before considering other opportunities.

"I have relished the challenges of the last three years transforming the group. I remain confident that the group has the right strategy and direction and will continue to flourish."

Talwar's resignation is not expected to change Standard Chartered's intention to remain an independent company, sources said.

His departure comes after Standard on Sunday said it was not for sale following repeated press speculation it could be the target of a takeover approach.

The comments came after a newspaper report that larger shareholders in the bank want bids to be sought.

For the last two months, the UK's Barclays Bank and Lloyds TSB, as well as US giant Citigroup have all been named as possible buyers.

Standard Chartered remains one of the few major UK banks available for takeover after the British government blocked Lloyds TSB's bid for Abbey National.

Standard's stock closed at 825 pence on Wednesday down 2.94 per cent and well off last week's early rally which took it towards £9 -- its highest level for almost four months -- as speculation grew the bank could receive an offer.

The bank's shares peaked at £11.35 in April 1999 but fell to 600 pence in late September after attacks September 11 in the United States.

Some analysts said the latest round of speculation was sparked by reports that Ian Prosser, chairman of the UK hotel chain Six Continents and a former director of Lloyds TSB, was to take over as chairman when Gillam is due to retire in 2003, opening the way for a bid.

Tell us what you think of this report