MONY and AXA change deal terms.(Merger Update)(MONY Group Inc., AXA Financial Inc. )

National Underwriter Life & Health-Financial Services Edition, March, 2004

SHAREHOLDER PRESSURE has pushed The MONY Group Inc., New York, and AXA Financial Inc. to change the terms of their merger agreement.

In September 2003, AXA Financial, a New York-based unit of AXA S.A., Paris, agreed to pay $1.5 billion, or $31 per share, for MONY, and to pay MONY managers about $90 million in "change in control" compensation.

In response to critics' complaints about the CIC package, members of MONY's senior management team have agreed to give up $7.4 million of the $90 million to fund a special, post-acquisition dividend for MONY shareholders, which, MONY says, would amount to 10 cents extra per share.

MONY shareholders can vote against the deal, and they also have a right to slow the acquisition process by voting to demand...

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