Published April 29, 2009 at 6:06 PM
Finger Interests Number One Ltd. is one of a handful of Bank of America Corp. (NYSE:BAC) shareholder groups that have filed suit over the acquisition of Merrill Lynch & Co. In this edition of Inside The Deal, partner Jonathan Finger says the BofA board, led by chief executive Ken Lewis, has destroyed shareholder value over the past five years. As a result, he's urging fellow shareholders to oust Lewis and two other directors at the bank's April 29 annual meeting. He also says BofA withheld information about Merrill Lynch losses prior to the shareholder vote on the deal in December. (For BofA's response to those charges, see the statement below.) See the video below or download it at iTunes. - Suzanne Stevens
Bank of America provided the following statement in response to Jonathan Finger's charges:
"The strategic and financial advantages of the Countrywide and Merrill Lynch acquisitions will soon be apparent. We believe our disclosures for the special shareholders meeting were appropriate and met all legal requirements. The vast majority of talent at Merrill Lynch is staying and synergies between Merrill Lynch and Bank of America platforms are already producing results."
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Low interest rates and alternative financing sources are just two of the many things affecting private equity deals right now, according to Paul Aversano, managing director at Alvarez & Marsal LLC. In a recent studio interview, Aversano discussed the conditions both buyers and sellers are facing at this time. Aversano, who is also the global practice leader for the firm's transaction advisory group, also outlined how low interest rates will continue to affect the M&A market and the pressure that PE firms are feeling to transact.