NEW YORK, Dec 29 (Reuters) - Financial services company Marsh & McLennan Cos. Inc. (MMC.N: Quote, Profile, Research) has agreed in principle to sell its Putnam Investments unit to holding company Power Corp. of Canada (POW.TO: Quote, Profile, Research) for $3.9 billion, The Wall Street Journal reported on its Web site on Friday.
A Putnam spokeswoman and a spokesman for Marsh & McLennan declined to comment. A representative for Montreal-based Power Corp. did not return a call seeking comment.
Citing people familiar with the matter, the Journal said the price to be paid by Power is at the higher end of most estimates and could be good news for Marsh's battered shareholders.
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While the companies have reached agreement, the deal still needs the approval of Putnam employees who own shares in the company, Putnam mutual-fund shareholders, and the board that oversees the funds, the newspaper said.
If the fund board and employees approve, a deal is expected to be announced early next year, pending fund-shareholder approval, it said, citing people familiar with the matter.
March & McLennan put Putnam, its money-manager, on the block in September, and Marsh & McLennan Chief Executive Michael Cherkasky said earlier this month that he would decide whether to sell the unit by early 2007.
Last month, the Journal reported that bidders for Putnam included Power Corp, Italian bank UniCredito Italiano SpA (CRDI.MI: Quote, Profile, Research) and London-based fund manager Amvescap Plc (AVZ.L: Quote, Profile, Research), Aim Trimark's parent company.
Power Corp. holds the controlling interest in Power Financial Corp., which controls Great-West Lifeco Inc. (GWO.TO: Quote, Profile, Research) and IGM Financial Inc., according to the company's Web site.
Marsh & McLennan shares were down 2 cents to $30.70 near midday on the New York Stock Exchange, while Power Corp. rose 29 Canadian cents to C$35.37 in Toronto.
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