CalPERS Opposes Re-Election Of 6 BofA Directors On Merrill Deal

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; [e-mail]