Management issues have become the foremost consolidation-related concern facing the dominant automated teller machine networks in New York and the Midwest, according to sources close to the networks.
The New York Switch Corp., a Hackensack, N.J.-based company that operates the NYCE network of ATMs, is expected to announce in the next few weeks a permanent successor to David A. Huemer, who died last year after only four months as NYCE's president.
Meanwhile in the Midwest, merger talks between the Magic Line network, based in Dearborn, Mich., and Chicago's Cash Station network are reportedly stalled over who will lead the merged network.
2 Seen Vying for Post
At NYCE, Gary Roboff, a Chemical Bank electronic banking executive who has been acting president since Mr. Huemer's death, is reportedly vying with Richard P. Yanak for the permanent job.
Mr. Yanak is president of the Yankee24, the New England network with which NYCE has agreed to merge.
NYCE and Yankee24 executives declined to comment on the pending management decision. But sources close to the network said NYCE feels a renewed sense of urgency about permanently filling the president's office because of Mellon Bank Corp.'s decision last week to become a part-owner of NYCE's rival, MAC.
Mellon, which is based in Pittsburgh, had been close to taking an equity position in NYCE but did an about-face and joined MAC, which is operated by Electronic Payment Services Inc. in Wilmington, Del.
Further driving NYCE's need for a permanent leader are discussions between the network and Citicorp, which is not a member of any regional network but is reportedly considering an equity position in NYCE.
Cole Seen as Front-Runner
In the Midwest merger talks between Magic Line and Cash Station, Stephen S. Cole, who is president of Cash Station, is considered the leading candidate for the top spot in a midwest meganetwork.
But several executives with stronger operational backgrounds are also said to be under consideration.
Further hindering the talks. sources said, is a disagreement between the two networks' member banks over where a meganetwork would be based.
Executives at Magic Line and Cash Station declined to comment.