The insurance industry, the American Bar Association, and corporate officers have all expressed concerns and are holding discussions and seminars with securities lawyers in an effort to try to curb the growth. The dissident group is seeking institutional support for a management shake-up. Shareholders will have no meaningful say in the new company as Fremont Investors will control the board with 60.5 percent of the voting power. Management would receive roughly 28 percent of the new stock under a new stock incentive plan.
Alternate method exists for increasing shareholder value through a share repurchase program.
Juno stockholders will have a chance to vote on the proposed merger with Fremont Investors at a special meeting to be held on June 29, 1999. The U.S. Securities and Exchange Commission approved a new rule dictating when shareholder approval is required for new employee stock option plans. The new policy, proposed by the New York Stock Exchange, requires shareholder approval only when applicable to under 50 percent of a company's employees with over half of that being officers or directors. Approval was on an interim basis with the policy set to expire at the end of September 2000. When asked why the bid was rejected, Razin responded that the offering company had no knowledge of the business and was unable to prove its ability to finance the deal.