Some Bank of America (BAC) shareholders want the firm to renegotiate its takeover of Merrill Lynch (MER), the Post says...with the aim of paying a lot less for Merrill.
Given that BAC’s stock collapse has driven Merrill into the single digits we’re not sure how much of a deal improvement they want. And given that BAC destroyed its own stock price by running out and doing a highly dilutive equity deal shortly after agreeing to buy Merrill, we’re not sure what the logic is. But, in any event…
The Post: So far, [only] Proxy Governance Inc., a firm that advises shareholders, has come out in favour of the deal. But recommendations from two other leading proxy firms – RiskMetrics Group and Glass Lewis – are due today.
What’s rankled some shareholders is the growing size of the deal spread, or the difference between a company’s stock price and the price the acquiring company has agreed to pay…
What’s more, the spread nearly doubled last week, suggesting growing doubts that it will succeed.
Opposition has been growing in recent weeks as doubts swell over the price tag the big Charlotte bank has placed on the brokerage firm.
Some disgruntled shareholders are seeking the advice of professionals who help battle unwanted mergers, sources tell The Post.
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