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Stock Analyst Update

Zions' Shareholders Reject First Security Deal

But the bank merger could still be resurrected.


Zions Bancorporation's (ZION) shares became more attractive late Friday after the bank's stockholders rejected a proposal to acquire rival First Security (FSCO).

The deal, which was billed as a merger of equals, has been wrought with problems, including an investigation by the Securities and Exchange Commission into Zions' past accounting practices. Most recently, First Security warned that its 2000 earnings would fall short of expectations. That news prompted Zions' merger advisor, Goldman Sachs (GS), to yank its blessing of the deal.

Laura Pavlenko Lutton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.