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Court halts merger talks between Finbank, FCMB

By Innocent Anaba
A Federal High Court sitting in Lagos, has restrained Finbank Plc and First City Monument Bank, FCMB,from taking further steps on a purported Memorandum of Understanding, MoU, for business combinations recently signed between the two banks.

Trail judge in the matter, Justice Okechuwku Okeke, ruling on an ex-parte application by counsel to the former Managing Director of Finbank, Okey Nwosu and a former Executive Director of the bank, Dayo Famoroti, Mr Onyebuchi Aniakor,  stopped  the two banks from altering the shareholding structure of Finbank in favour of FCMB.

The court said that the orders are to subsist pending the hearing and determination the suit.

Nwosu and Famoroti were among top bank chiefs removed by the Governor of Central Bank of Nigeria in the wake of banking reforms embarked upon by the current management of the apex bank.

Nwosu and Famoroti  in the suit are challenging the propriety of the MoU signed by Finbank and FCMB without recourse to them as shareholders of Finbank.

The court also directed the plaintiffs to file an undertaking as to damages should it turn out that the orders ought not to have been made, while further hearing in the matter was adjourned till May 26, for hearing of the motion on notice for interlocutory injunction.

Defendants in the suit are Finbank and its Managing Director, Suzanne Iroche and two Executive Directors of the bank, Adam Nuru and Omoruyi Iyamu, nine non-Executive Directors of Finbank, Theo Osanakpo, Iheanyichukwu Anyadiegwu, Agnes Ebubedike, among others.


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