Meeting |
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Report |
Meeting |
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Report |
May 29, 2001 |
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| First Union CEO Ken Thompson was not reluctant to
use his time before Charlotte Rotary Tuesday to tout the primacy of the proposed merger of
equals between his financial services corporation and Wachovia over the hostile bid from
Sun Trust of Atlanta. "We remain firmly convinced that our proposed merger is clearly superior for Wachovia's shareholders," Thompson said. "Our merger of equals is the better choice for Wachovia shareholders. We are confident that shareholders will agree when they look at the facts. We believe that the Sun Trust proposal simply won't work." He noted that when the Sun Trust bid was announced the premium was 17 percent over First Union's. "After eleven trading days the premium at the close on Friday was down to three percent," Thompson said. "Sun Trust is in New York today talking to market analysts. I think they're trying to stop the bleeding." The Rocky Mount native said that merging Wachovia and First Union will create a new Wachovia "with a platform for sustained growth and increasing shareholder value. As we work with Wachovia during the integration, we are more certain than ever that this merger is the best course of action for both companies. It is an unprecedented opportunity for both companies' shareholders, customers, employees and communities." Thompson said the new entity would be "a powerful force in banking, wealth and asset management, and capital markets." The new company would have more than 19 million customers and diversified income from international, national and regional businesses. "This will be a gold-plated franchise. We will be one, two or three in deposits in every MSA between the New York City suburbs and Key West, Florida." He noted that Wachovia and Sun Trust have been having merger talks for more than 16 years and they could never reach an agreement. Wachovia broke off the latest talks in December when no deal could be struck. The 23-year veteran of First Union noted that hostile bids in the banking industry have a terrible track record, and are clearly disruptive to shareholders, employees and customers. The graduate of Wake Forest University's Babcock School of Management also questioned where Sun Trust had the capability and experience to carry out a successful integration of this size. First Union has carried out 81 mergers in 16 years plus acquiring brokerages, asset management firms and capital markets. "All except Core States have gone well." In that same time Sun Trust has only one acquisition of more than $100 million. I think it's clear which organization can do a better job." President Don announced that the Club Assembly will be next week at SMS Catering on Norland Road where it has been held for the past several years. Festivities begin at 5 p.m. with dinner at 6 followed by a program of incoming President Jim Woodward's year. President Don also urged Club members to accept his challenge to become Rotary Benefactors. Mark Norman introduced one of the Club's largest groups of visitors during the past year including one from Auckland, New Zealand. A number of the guests were new members in waiting, as President Don continues his quest to build Club membership to well over 300. Thomas Moore, a former member of the Sounds of America singing group when he was a teenager, led the Club in "God Bless America" in recognition of the fact that Monday was Memorial Day. Byron Billiard gave the invocation. Other members of the head table included Helmut Deussen, Powell Majors, and Bullard in addition to three Club members from First Union: Curt Farmer, Rob Wright and Mary Mack. Mary introduced Thompson, noting that it's difficult to introduce your boss. She called him one of the most "caring, compassionate and courageous" leaders she knew. And Thompson assured her she "did well." * * * |
New Member
2001 Business Development, Non-Profit The Ben Craig Center Mark Schaffner is president
and CEO of The Ben Craig Center. For the last eleven years he has either consulted with or
held key management positions in early-stage companies. As part of his responsibilities as
associate director and then president of The Ben Craig Center, he consulted with over 100
companies on how to solve the sales, marketing, production, and financing problems that
face early-stage entrepreneurs. * * * POWELL'S
Richard Rankin
will be leaving Queens College to become headmaster at Gaston Day School, an institution
from which he graduated. * * * |
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Revised: January 24, 2008.
