Putnam Says No' to Wamu Providian Takeover Plan
August 5, 2005
Putnam Investments indicated Monday it will oppose Washington Mutual's plan to take over Providian Financial, of which it owns 7.5% of stock.
With Washington Mutual, the nation's oldest thrift, offering to pay 0.45 of its shares for each of Providian's, the deal would be worth approximately $6.5 billion, according to one estimate.
Still, "in a consolidating industry, and in light of the recently announced Bank of America/MBNA transaction, mono-line credit card companies such as Providian represent an increasingly scarce asset that should command a higher price," Putnam said in a statement.
Putnam is set to vote on the proposed merger at an Aug. 31 meeting.
(c) 2005 Money Management Executive and SourceMedia, Inc. All Rights Reserved.