Broking giant Marsh & McLennan's $2.1bn acquisition of UK broker Sedgwick (Re, October 1998, p3) loo...Broking giant Marsh & McLennan's $2.1bn acquisition of UK broker
Sedgwick (Re, October 1998, p3) looks set to close successfully later this
month now the merger has received the approval of the Federal Trade
Commission (FTC) in the US.
A spokesman for Marsh & McLennan said the deal was expected to become
unconditional by 5 November and to close around the middle of the month,
provided the deal receives the blessing of the European Commission.
The FTC's earlier request for more information on the deal had led to
rumours that it might fail. The announcement that Aon - Marsh & McLennan's
closest rival in the global insurance broking market - had acquired around
1.5% of Sedgwick's shares also provoked gossip that Aon might be preparing
to pick up the pieces if the deal collapsed.
However, a spokesman for Aon explained that the shares had been bought by
Aon Advisors, an asset management division of Aon, on behalf of its
Aon Advisors acquired the shares at between 197p and 199p per share, which
could mean a quick 12.5% profit if the Marsh/Sedgwick deal goes
unconditional at the offer price of 225p per share.
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