First Citizens Deal Spotlights Role of Independent Committees

August 25, 2014 – Media Mention
American Banker
Richard Morris opines on the need for special committees in unusual M&A situations, such as the one between First Citizens BancShares and First Citizens Bancorp – a merger where the controlling shareholders on both sides belong to the same family. In the article, Morris says that in order to ensure against a conflict of interest, a special committee of “intelligent, active, involved directors that are not part of the family" should be formed to provide a second opinion on the deal. According to Morris, buyer and sellers should also hire their own lawyers and investment banks. "The special committee is there to protect and serve the shareholders, and to do so they've got to be well-equipped. You don't send someone out to plow a field with a teaspoon."