Three companies will be making their final bids for Putnam Investments before the Thanksgiving holiday, according to people familiar with the deal, The Wall Street Journal reports. They are Amvescap, Unicredito Italiano and Power Corp. However, a decision on which offer to accept, if any, by parent company March & McLennan isn’t expected for several weeks.
The company may accept an offer with an “earn out” clause, which would allow the buyer to offer a lower price at the outset and additional payments if certain financial goals are met.
While Putnam’s assets are less than half of what they were at their peak in 2000 due to poor performance followed by the market timing scandal, the funds’ performance and the company’s reputation have improved since Charles “Ed” Haldeman took over as president and CEO In 2003.