Company: CMA
Filing Date: 2025-12-22
Form Type: PX14A6G
Source: 0000921895-25-003378
Chunk: 1

Company: COMERICA INC
Filing Date: 2025-12-22
Form: PX14A6G
Chunk 1
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holdcoam.co/CMA_Dec22

Vik Ghei and Misha Zaitzeff, Co-Founders of
HoldCo, noted:

“We continue to recommend that shareholders
vote ‘NO.’

On December 18, Comerica amended its Proxy
Statement to add roughly 2,200 words of new “Background of the Mergers” disclosure—a 77% increase—that, in our
view, corrects a previously misleading and scant description of the process.

The supplemental disclosures demonstrate to
us that the timing of the sales process—designed to neutralize a proxy contest—and Mr. Farmer’s personal compensation
package, rather than shareholder value maximization, were the primary drivers of the transaction. Comerica’s Board repeatedly stressed
timing concerns in the face of HoldCo’s pending proxy fight, looking to ward off an imminent board refresh and the possible termination
of the CEO, the same individual responsible for solely negotiating the sale process.

Only 17 days elapsed between the initial merger
discussion and execution of the merger agreement. This is, by a wide margin, the fastest bank merger timeline since the 2008 global financial
crisis.

Critically, the supplemental disclosures also
show that the Board ultimately rejected alternative proposals, including from ‘Institution A,’ which involved an expedited—but
apparently not quite fast enough—timeline that would not have foreclosed the proxy contest and contemplated the possibility of a
transitional post-closing employment role for Mr. Farmer. Instead, the Board chose Fifth Third’s much faster timeline and its more
appealing offer for Mr. Farmer, including a rich compensation package and a Vice Chairman position, and did not return to Institution
A to solicit an improved proposal.

Most importantly, we continue to believe the
downside to voting down the merger is limited. A ‘NO’ vote does not, by itself, terminate the transaction, nor does it permit
either party to immediately walk away. Under the merger agreement, Comerica and Fifth Third are required to use their reasonable best
efforts to restructure and resubmit the transaction. Given the unprecedented nature of a transaction with no tangible book value dilution,
we believe there is substantial room for improvement—either from Fifth Third or from a third party—should shareholders reject
the current terms.”

As ISS itself states (emphasis added)1:

“It is important to establish that disclosure
in the initial proxy statement was limited and did not provide shareholders with sufficient information. For instance, the disclosure