Bank's $2.7bn Savings Hope

WESTPAC is to move quickly to take control of St George Bank and begin a three-year effort to strip as much as $2.7 billion in costs from the combined operations of the two companies after yesterday's overwhelming vote in favour of their merger by the Dragon's shareholders.

An announcement on management appointments and the way St George will be run as a separate operation within the bigger group is expected in coming days as Westpac chief executive Gail Kelly seeks to capitalise on the end of a seven-month-long bidding process.

Westpac, which takes formal control of St George on December 1, has committed to keeping the Dragon brand and name as well as its 400 branches including its Bank SA outlets in South Australia - and its ATM network.

But, under a blueprint that has been worked out by an integration committee of senior executives of both banks, savings equivalent to a quarter of St George's cost base are set to start flowing within the first few months of the merger.

The Finance Sector Union yesterday forecast that up to 5000 jobs could eventually go from the combined entity, providing ammunition for vocal critics of the deal at yesterday's extraordinary general meeting called to approve the merger.

St George chairman John Curtis was forced to defend the transaction after a succession of speakers urged rejection of the $16 billion proposal on the grounds that the bank's identity and its reputation for customer service would disappear.

He admitted that there would be an unspecified number of job losses.