Dive Brief:

• Bank of America Merrill Lynch’s failure to disclose its previous communications with Signet Jewelers, which also runs Kay and Jared stores, could endanger the proposed merger between Signet and Zale Corp.

• The bank had recommended that Signet make an offer of $17-$21 per share in October, but later told Zale Corp. it had only a limited relationship with Signet, the New York Times is reporting.

• A major Zale investor has opposed the merger. This revelation of a failure to disclose helps its case and will likely delay a shareholder vote.

Dive Insight:

Hedge fund TIG Advisors LLC, which owns 9.5% of Zale, has opposed this merger because it says the offer is unfair and Signet failed to court other possible bidders. It’s unclear whether this failure on the part of Bank of America Merrill Lynch was a mere oversight, but it is enough to at least delay a shareholder vote on the merger scheduled for May 29.