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.
Price Command
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.
http://www.mmexecutive.com http://www.sourcemedia.com
