Great-West sells Putnam

Article Excerpt

GREAT-WEST LIFECO, $38.87, is still a hold. The company (Toronto symbol GWO; shares outstanding: 931.7 million; Market cap: $36.2 billion; TSINetwork Rating: Above Average; Dividend yield: 5.4%; www.greatwestlifeco.com) has now agreed to sell its money-losing U.S.-based Putnam Investments mutual fund business to Franklin Resources, Inc. (New York symbol BEN), which operates as Franklin Templeton. In all, the company expects that the total sales price will range between $1.7 billion U.S. and $1.8 billion U.S. The sale will also let Great-West better focus on its U.S. retirement and personal wealth operations, including last year’s $4.35 billion purchase of the full-service retirement business of U.S.-based Prudential Financial Inc. However, big acquisitions like that add risk. Great-West Lifeco is still a hold. hold…