ANZ has confirmed it has settled a legal dispute with Steve Targett, who formally headed up the bank’s institutional business but sued the bank for $57 million after being passed over as chief executive.
BusinessDay reported on Saturday the two had reached an in-principle agreement to end legal proceedings.
The agreement to end a 2½-year legal dispute comes just days before the former executive's claim of misleading or deceptive conduct against ANZ was due to be heard in the Federal Court.
Mr Targett quit his lucrative job in London as wholesale and international director of Lloyds TSB to join ANZ in 2004, and reported directly to former chief executive John McFarlane until his sudden departure in June 2007.
In his statement of claim, Mr Targett said Mr McFarlane had promised to groom him as a chief executive, by increasing his role within ANZ and helping to secure a directorship of another top Australian company.
Mr Targett was shortlisted but missed out on the chief executive role, which went to HSBC's Asia-Pacific boss, Mike Smith.
ANZ today said Mr Targett has agreed to discontinue his legal action and has signed a deed of release.
No payment will be made as a result of the settlement and each party will meet their own legal costs, the bank said.
‘‘ANZ has consistently maintained Mr Targett’s case was without merit,’’ the bank said in a statement.
Lawyers for Mr Targett could not be immediately reached.
ejohnston@theage.com.au
The Age
