Reports that London-based Willis is once again approaching Marsh & McLennan Companies about acquiring its insurance brokerage unit sent their stocks higher on a day when the Dow lost over 300 points.

In an e-mail an MMC spokeswoman in New York said the company had no comment on the rumor. A Willis spokeswoman said the brokerage does not comment on rumors or speculation.

This is the second time reports have surfaced that executives with Willis have approached MMC about making a deal.

Yesterday's news that Willis may have contacted the firm was reported by CNBC late in the afternoon before the closing bell.

Some have speculated that a deal would involve the private equity firm Kohlberg Kravis Roberts & Co., which took Willis Group Holdings private in 1999. In 2002, the firm went public again under current Chief Executive Officer and Chairman Joe Plumeri, who was brought in by KKR. KKR has sold off most of its interest.

The first report that Willis was making an offer for Marsh came in October last year in the Sunday Times of London which said it received its information from banking sources there.

MMC has been through difficulties since it gave up contingent commissions back in 2005 as part of an agreement with the New York Attorney General's Office to end investigations over kickbacks and steering of insurance contracts.

Its flagship company, insurance broker Marsh, recently has gone through some management reorganization, and MMC's president and CEO, Michael Cherkasky, is scheduled to leave once a replacement is found.

On the day when the Dow Jones Industrial average dropped 306.95, MMC gained 83 cents to close at $27.28. Willis was up 3 cents to $36.59.

Commenting on the news in an analyst's note, Meyer Shields with Stifel Nicolaus said that despite its problems, Marsh still holds a lot of value and that many Willis brokers have been with Marsh, making cultural integration a little easier. It would also eliminate much of the competition Willis faces in brokering against Marsh. Willis would have access to cash because of its relationship with KKR.

The downside, he said, is that it would probably invite anti-trust objections, especially in Europe. Some clients who have split their accounts between the two may object, and there would still be inevitable cultural clashes in integration.

Marsh is considered the world's largest insurance brokerage firm, while Willis is ranked number three. Chicago-based Aon is ranked second, and Itasca, Ill.-based Arthur J. Gallagher is ranked fourth.

Special Reports /

Acquisition Rumor Trends Broker Stocks Higher

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