Putnam Value in Potential Sale Seen Declining

Although there were earlier reports that Putnam had its first positive month of inflows in three years, in October, and that the value of its name still held enough clout to command a top selling price, now there are reports that ongoing redemptions and poor performance could hurt those chances.

The company could be sold at a lower price or even be taken off the block, Reuters reports.

“I would not be surprised if, like MFS Investment, Putnam, too, gets pulled off the block,” said the CEO of a mutual fund distribution company. “It would be difficult to get a good price when there’s so much money leaving the firm and when the big funds are not firing [on all engines].”