Bank of America weaves a tangled web in Zale-Signet merger

The efforts of Signet (SIG +0.1%) to acquire Zale (ZLC +0.8%) could be done in by deal adviser Bank of America Merrill Lynch's failure to disclose a conflict of interest.

BAML delivered a presentation to Signet last October in which it recommended to the company it make an offer to buy Zale for $17 to $21 per share. The investment bank then turned around to rep Zale in the merger talks while disclosing only "limited" prior relationships with Signet, according to The New York Times.

The apparent foul-up gives TIG Advisors even more ammunition to convince other Zale shareholders to oppose the merger.

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Comments (1)
  • zcharles
    , contributor
    Comments (293) | Send Message
    if this is not example of greed i don't what is. i think signet is overpaying for zale. what is signet getting for their money? the stock was 5 and now it is worth 20+. i don't see the synergies.
    16 May 2014, 04:03 PM Reply Like
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