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"And that can undermine shareholder confidence in the integrity of the approval process," she said.
With shareholder confidence faltering, the bank has moved to shed noncore assets and allay fears about its capital position.
In the post-Enron world, public relations experts say, TV appearances are crucial for bolstering consumer and shareholder confidence.
Now, as an activist investor, Mr. Arnold wants to again repair shareholder confidence in UBS, whose shares closed on Thursday at $20.87.
It remains to be seen whether banks will step forward and accept partial government ownership, or what will happen to their stock prices or shareholder confidence if they do.
The moves could be a crucial step in restoring shareholder confidence in Tyco, which is obliged to repay $5.8 billion in debt next month and more than $11 billion in debt by the end of 2003.
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Still, the muted response of Seagram's stock raised questions about shareholders' confidence in a merger.
Finally, they write, Engelhard's "failure to find a white knight willing to pay more than $38 a share is hardly likely to give shareholders confidence in Engelhard's own estimation of its true value".
To restore shareholders' confidence, Tyco has promised to answer questions about its financial statements, but the company has declined to disclose some information that analysts and investors would like.
"By reducing De Beers's level of external debt and improving its capital structure, this investment would better enable the company to take advantage of new opportunities and demonstrate the shareholders' confidence in De Beers's continued market leadership as the recession gives way to recovery," De Beers said.
"The market value of my company is a crucial measure of my shareholders' confidence in me.
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