09-16-2008, 01:52 AM
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Industry Role:
Join Date: May 2006
Posts: 9,820
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Shareholders Sue Merrill Over Proposed BofA Deal
Quote:
Shareholders sued Merrill Lynch Chief Executive John Thain and the company's board of directors on Monday over the proposed buyout by Bank of America, claiming the terms of the deal are unfair.
The lawsuit, filed in New York State Supreme Court on behalf of a shareholder identified as Peter Miller and a class of investors, said the proposed $50 billion sale was "wrong, unfair and harmful to Merrill public stockholders."
Merrill Lynch spokesman Mark Herr declined comment.
The lawsuit, filed by law firm Murray, Frank & Sailer, described the woes of the subprime mortgage crisis and said Merrill's attempt to mitigate its losses had failed.
It said Merrill's public stockholders "have been and will continue to be denied the fair process and arm's length negotiated terms to which they are entitled in a sale of their company."
Earlier Monday, another law firm, Wolf Haldenstein Adler Freeman & Herz, said it would file an investor lawsuit against both Merrill and Bank of America, which would become the biggest bank in the United States if the deal is approved by stockholders.
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http://www.cnbc.com/id/26732941
Interesting turn of events... not gonna get away so easily now are ya Merrill... |
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