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

|About: Signet Jewelers Limited (SIG)|By:, SA News Editor

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.