Another Proxy Firm Urges 'No' Vote on Providian Takeover

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00004207-another-proxy-firm-urges-no-vote-on-provi/

By James B. Kelleher, Reuters

A U.S. proxy advisory service has broken ranks with its counterparts and urged shareholders to reject Washington Mutual Inc.’s proposed purchase of Providian Financial Corp., calling the process that led to the $6.45 billion offer “flawed.”

Glass Lewis & Co., which provides advice to institutional investors about takeovers and other issues, said it opposed the deal because it wasn’t convinced that Providian’s management had done enough to solicit competing offers.

The deal, Glass Lewis wrote in its opinion, “was struck without a market test or auction; no other buyers were contacted. We now know that there were several other buyers in the market for monoline credit card companies and we suspect, with an effective process, a better result could have been achieved.”

For this complete story, please visit Proxy firm says Providian deal ‘flawed’.

Another Proxy Firm Urges 'No' Vote on Providian Takeover

Unknown Author

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