Seeking Alpha
Profile| ()  

Marsh & McLennan has provisionally agreed to sell Putnam Investments unit to Canadian holding company Power Corp. for $3.9 billion pending approval by Putnam workers who hold shares in the company, mutual-fund shareholders and the board in control of the funds. The sale exceeds estimates, anonymous sources told the Wall Street Journal, MCM 12.28.06and should be a lift for embattled Marsh & McLennan shareholders. Putnam has been on the road to recovery after the bear market of 2000-02 and the fund-share trading scandal of 2003. Power Corp, Canada’s largest mutual-fund company, sees the acquisition of Putnam as an opportunity to expand into the U.S. money-managing business. Shares of Putnam closed at $30.72 down 0.8%, while Power Corp. shares were up 0.2% to $35.08 on the Toronto Exchange.

• Sources: Wall Street Journal, Reuters, Marketwatch,
• Related commentary: Putnam Might Fetch a Good Offer Despite Difficulties, Slowly but Surely, Recovery Begins and MMC, A General Insurance Broker's Story
• Potentially impacted stocks and ETFs: Marsh & Mclennan Companies Inc (MMC). Competitors: American International Group (AIG), Aon Corp. (AOC)

Seeking Alpha's news summaries are combined into a pre-market briefing called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only a few seconds to sign up.

Source: Power Corp. To Acquire Putnam for $3.9 Billion