March 31, 2000

A resounding 'No' put an end to speculation about the Zions-First Security bank merger, as had been negotiated. Zions shareholders voted down the merger this afternoon. News Specialist Richard Piatt was there.

The bottom line is that the majority of the Zions shareholders thought the deal was bad for them, bad for the bank. And so the deal is off.

Shareholders from around the country showed up to vote, and crowded into a meeting room at the Doubletree Hotel. In spite of the recommendations of the Zions board, the shareholders thought the deal had taken too much from Zions at their expense.

The final vote was 45% NO, 33%, yes, and 22% abstained.

Here's what some of the shareholders said as they left today's meeting.

Al Potts/Zions Shareholder: I'M VERY HAPPY. I JUST FELT IT WASN'T FAIR TO THE INVESTORS, THE DIFFERENTIAL BETWEEN THE TWO SHARES.

Linda Stone/Zions Shareholder: I WAS HOPING FOR IT TO WORK. I'M NOT SAYING THAT IT WON'T, I'M JUST DISAPPOINTED THAT IT DIDN'T. I'M HOPING TO MAKE SOMETHING POSITIVE OUT OF IT."

The rejection is not a surprise to most experts. The deal started to sour earlier this month when First Security's earnings and share price dropped.

The market closed before the vote was final. But experts say Zions may have closed up in anticipation of the merger's rejection. It closed up 3 5/16ths at 51 5/8. First Security closed up a quarter at 12.

The two banks still can renegotiate terms, or they can go their separate ways.