Claims "not accurate" - ACTE
The National Business Travel Association (NBTA) has denied any ongoing merger discussions with the Association of Corporate Travel Associates (ACTE).
In a memo to members, NBTA said the ACTE had refused requests to enter into a "financial due diligence" review.
But ACTE's communications director Jack Riepe told ABTN today (Aug 24) that the NBTA's claims were "not accurate".
Mr Riepe said: "We sent them a statement outlining exactly how things were going to work, and that was first of all there has to be an agreement between the two to pursue merger discussions, and second, once that was agreed to and a non-disclosure agreement was signed, the two would begin negotiations.
"They're saying that they want everything up front, and it's just not done that way."
The memo was signed both by NBTA incumbent ceo and president Kevin Maguire and his successor Craig Banikowski.
"If you read the trade publications, you probably know that discussions took place earlier this year around combining the two organizations," the memo said.
"However, the ACTE Board has refused to enter the financial due diligence process, so there are no ongoing discussions at this time."
NBTA was unable to comment further.
Mr Riepe said aspects of the ACTE's latest proposal had proved "a sticking point" including one addressing concerns over voting rights for non-US supplier members of the merged organisation.
"It would also involve in two years renaming the organisation and moving away from the US-centric trade association," he added.
"Quite frankly it's obvious to everybody at this particular point they're not thrilled with those points in the proposal."
NBTA raised concerns earlier this month over the way in which ACTE had made its latest merger proposal.
Mr Maguire applauded the ACTE's decision to reopen merger talks but said he was first made aware of it by the media, a claim denied by ACTE.
Mr Maguire also said the decision by the Professional Convention Management Association (PCMA) to pull out of its strategic alliance with the ACTE had raised concerns over "due diligence".
But Mr Riepe said ACTE's own concerns over due diligence had resulted in the failure of the first round of merger talks.
ACTE said if the merger went ahead, it proposed the two bodies co-branded for two years before creating a new name.
It suggested an interim board with five members each from the current boards also for two years and then elections with "non-US seats guaranteed."
PCMA, a Chicago-based body for the US meetings industry, walked away from its merger talks with ACTE this month as a direct result of the new NBTA proposal.
The surprise move by PCMA came as it was carrying out its due diligence process to assess the best interests of members.
ACTE announced its plans for a "progressive and innovative" strategic alliance with the PCMA in June after its board had then decided not to pursue a merger with the NBTA.
It was the NBTA which first suggested a merger with the ACTE after informal talks between officials from each body.
But ACTE's board rejected the link up on June 8.
Days later three of its officials, including treasurer Brad Seitz, treasurer elect Mary Ellen George and the then president Doug Weeks resigned. Mr Weeks said the rejection of the merger had been a "factor" in his decision.
Richard Crum, a former ACTE president, stepped in to replace Mr Weeks and another former president Greeley Koch took over Mr Crum's previous role in the organisation of head of its Global Centre For Research and Education.
While these changes took place, NBTA's board again backed the idea of a merger.
Mr Crum said that any merger plan needed the backing of 51% of the ACTE membership, not just 51% of those who voted.
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