While Power Corp. has been known to swoop in as a white knight in some corporate auctions, its $3.9 billion acquisition of Putnam Investments has taken many in Canada by surprise, given the weak financial condition of the firm, The Globe and Mail reports.

The reputation of Putnam and its parent company, Marsh & McLennan, have been sullied, having paid more than $1 billion due to the mutual fund trading, bid-rigging and price fixing allegations. Putnam’s funds are also performing quite poorly; 18 of the 20 largest fund companies’ funds have outperformed Putnam’s funds for the past three years, according to Morningstar.

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