Marsh & McLennan Companies Inc. said today that it completed the sale of Putnam Investments to Great-West Lifeco Inc., a financial services holding company controlled by Canada-based Power Financial Corp.
New York-based MMC, the parent company of insurance broker Marsh, said under terms of the agreement, MMC sold Putnam Investments to Great-West Lifeco for $3.9 billion in cash. After accounting for taxes and minority interest, MMC said it will net approximately $2.5 billion in cash from the deal.
MMC said management will discuss the transaction in more detail during its second-quarter conference call with analysts scheduled for Aug. 7. The firm added it would discuss its plans for the money at that time.
MMC decided earlier this year to sell Putnam after receiving several unsolicited bids for the investment firm.
Putnam, ranked the 10th largest investment firm, handled $192 billion in assets under management by the end of 2006. In 2003 the Boston-based firm was investigated for trading abuses and saw investors pull $4 billion in funds. The next year the company paid $50 million in fines.
The all-cash deal involves no transfer of debt. According to one source, MMC's debt stands at more than $5 billion.
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