Dow Jones
HONG KONG - A change in leadership at Standard Chartered PLC does not signal any change in strategy or a plan to sell the company, its new chief executive said Thursday.
Standard Chartered named Mervyn Davies its CEO on Thursday, after the unexpected departure of Rana Talwar.
Speaking at a press conference after his promotion from the job of running the company's biggest market in Hong Kong, Mr. Davies said there would be "no changes in strategy."
Standard Chartered has been the subject of frequent takeover speculation, and Mr. Talwar's resignation - reportedly over disagreements with other executives - rekindled talk that the U.K. banking company would now become an acquisition target.
However, Mr. Davies quashed that notion and said the company is "absolutely committed to remaining independent."
Standard Chartered will continue to follow strategies adopted under Mr. Talwar, and it remains "absolutely committed to listing in Hong Kong as soon as market conditions allow," Mr. Davies said.
The listing on Hong Kong's exchange will occur only after the company winds up another earnings season, but "as soon as possible in the new year," he said.
China will probably figure prominently in Standard Chartered's future, because "we do see tremendous opportunities" there, Mr. Davies said. The company is looking at opportunities for alliances and partnerships, as well as Chinese banks in which to take a minority stake, he said.
Meanwhile, Standard Chartered's productivity program "remains on track," he said. Last year it launched a plan to centralize its processing and support functions at two hubs: the southern Indian city of Chennai and Kuala Lumpur, Malaysia.
The company will try to become "leaner and meaner," Mr. Davies said. It has a strong market position in select countries and a strong position in select products, he said.
He also said that he wants Standard Chartered to be regarded as a top-quality, service-oriented company and a great place to work, and that it is too early to decide who will succeed him as the Hong Kong group's executive director.
Separately, he said that Standard Chartered's chairman, Patrick Gillam, who is scheduled to retire in 2003, is also seeking a successor, and that one would probably be named before the 2002 annual shareholders' meeting.
