Saturday, October 15, 2005
Jefferson Pilot Was Sold
In interviews in the News & Record and Business Journal (unposted), Jefferson-Pilot's CEO Dennis Glass contends that Lincoln Financial's acquisition of JP is actually a "merger of equals."
I understand why Glass and perhaps Lincoln might think this acquisition will play better in Greensboro if marketed as a merger, but the facts make it clear it is an acquisition:
Lincoln is buying JP's stock with cash and Lincoln stock
Headquarters of the combined companies will be in Philadelphia
Lincoln will have a slight majority of board seats
Glass will take the #2 executive position to Lincoln CEO Jon Boscia
Each of those facts points to an acquisition rather than a merger of equals. I hope that Glass is pitching the deal as a merger simply to make JP's sale more palatable for JP employees and Greensboro residents.
***UPDATE***
I finally read last Friday's N&R, and the top story written by Dick Barron argues the same point as this post.
I understand why Glass and perhaps Lincoln might think this acquisition will play better in Greensboro if marketed as a merger, but the facts make it clear it is an acquisition:
Lincoln is buying JP's stock with cash and Lincoln stock
Headquarters of the combined companies will be in Philadelphia
Lincoln will have a slight majority of board seats
Glass will take the #2 executive position to Lincoln CEO Jon Boscia
Each of those facts points to an acquisition rather than a merger of equals. I hope that Glass is pitching the deal as a merger simply to make JP's sale more palatable for JP employees and Greensboro residents.
***UPDATE***
I finally read last Friday's N&R, and the top story written by Dick Barron argues the same point as this post.
