Speculation that Marsh & McLennan might spin off its scandal-plagued Putnam Investments unit continues, with the Boston Business Journal now reporting that a sale, merger or management buyout are all seen as possibilities. The fact that MMC has been caught up in an insurance scandal of its own costing it an $850 million settlement makes a sale even more likely, because Putnam would probably fetch that amount or even far more, according to the paper. In fact, according to one analyst, Justin Fuller of Morningstar, Putnam accounts for nearly half of MMC's $32 stock value, which could put its price tag as high as $8 billion.

"It makes a lot of sense given what March McLennan has done and that Putnam is in turnaround," a source close to the two firms said.

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