2000

UNITED DEMOCRATIC MOVEMENT

MEDIA RELEASE


NEDCOR/STANBIC

STATEMENT ISSUED BY DR GERHARD KOORNHOF, MP
UDM SPOKESPERSON FOR FINANCE

The UDM welcomes that Nedcor's application, to acquire more than 49% of the shares in Stanbic, did not succeed, for the following reasons:

1. South Africa needs sound financial competition in the banking sector, but also in each of the other sectors of our economy;

2. thousands of potential job losses have been avoided;

3. Stanbic seems to be in a financially sound position, which makes any take-over attempt questionable.

While the UDM agrees with the final outcome on this issue, which has ended uncertainty over an extended period of time, we are conscious of the fact that political intervention in business decisions should be minimised. It would have been preferable if the concerned shareholders had made the final decision.

Both Nedcor and Stanbic are respectable and financially sound organisations, and the UDM wishes their management and employees bright financial futures, with a continued socio-economic conscience, especially toward disadvantaged South Africans.

Enquiries:
Gerhard Koornhof, MP
Spokesperson for Finance

Cape Town
22 June 2000