CalPERS said it will vote against the re-election of six Bank of
America Corp. (BAC) directors, saying they "failed to fully
disclose the true financial condition of Merrill Lynch" before the
investment bank's acquisition at the end of 2008.
"Shareowners did not have complete or accurate information prior
to approving the merger, and Bank of America's stock price fell
dramatically," said senior portfolio manager Anne Simpson, who
heads the corporate-governance program for the California Public
Employees' Retirement System. "Moreover, Merrill executives
received bonuses that weren't disclosed to us before the
merger."
Disclosure details about the deal have ended up in court. A
federal judge last month reluctantly approved a $150 million
settlement between Bank of America and the Securities and Exchange
Commission.
Meanwhile, New York Attorney General Andrew Cuomo has sued the
company, former chief executive Ken Lewis and Joseph Price alleging
civil securities fraud.
CalPERS will be backing seven other Bank of America directors
who have joined the panel since the deal was closed.
The company's annual meeting, at which the votes will be
tallied, will be held Wednesday.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com