K.J. Harrison & Partners Inc. Calls for Spin-off of Marsh & McLennan Subsidiaries
Market Wire, November, 2007
K.J. Harrison & Partners Inc. (KJH) of Toronto, a private client investment management firm in Toronto, Canada, has filed a shareholder resolution with Marsh & McLennan Companies, Inc. for inclusion in the proxy statement for the 2008 annual meeting of shareholders seeking the spin-off of its Kroll and Mercer subsidiaries. KJH sees the breakup of the company as necessary to protect the value of the underlying franchises and to maximize shareholder value.
Jim Harrison, CEO of K.J. Harrison & Partners, said, "In our view, holding companies are effective only when they demonstrate that they can add value through excellence in capital allocation and management selection and retention. Marsh & McLennan is currently doing neither. Consequently, the share price trades 40% below our estimate of the underlying enterprises, and these enterprises are each at a disadvantage to competitors."
Related Results
Harrison continues, "To maximize value, the Board must continue the process begun with Putnam and move as quickly as possible to spin-off the remaining subsidiaries on a tax-effective basis. Marsh & McLennan trades at the same price as it traded in 2004 when market participants questioned its financial viability. It is now obvious that the Company failed to adopt appropriate strategies and recruit the right people to repair Marsh. Marsh, an insurance brokerage and once the gold standard in its industry, is now ranked third in profitability behind Willis Group Holdings Limited and Aon Corporation. While Mercer and Kroll remain industry leaders, they will inevitably suffer from the poor performance of the Company and the associated competitive disadvantage in the market for talent."
To view a copy of the supporting documents, please click on the following links:
http://www.ccnmatthews.com/docs/sps1127.pdf
http://www.ccnmatthews.com/docs/sl1127.pdf
http://www.ccnmatthews.com/docs/kjl1127.pdf
Contacts: K.J. Harrison & Partners Inc. Margaret Franklin (647) 281-4944 Email: marg@kjharrison.com
Most Recent Business Articles
- Multiple criteria evaluation and optimization of transportation systems
- Multi-criteria analysis procedure for sustainable mobility evaluation in urban areas
- A two-leveled multi-objective symbiotic evolutionary algorithm for the hub and spoke location problem
- Multi-criteria analysis for evaluating the impacts of intelligent speed adaptation
- The development of Taiwan arterial traffic-adaptive signal control system and its field test: a Taiwan experience
Most Recent Business Publications
Most Popular Business Articles
- 7 tips for effective listening: productive listening does not occur naturally. It requires hard work and practice - Back To Basics - effective listening is a crucial skill for internal auditors
- FAS 109: a primer for non-accountants - Financial Accounting Standards Board's "Statement 109: Accounting for Income Taxes"
- LIFO vs. FIFO: a return to the basics
- Design a commission plan that drives sales - Sales Commissions
- Too Young to Rent a Car? - 25-years-old the minimum age for car renting - Brief Article
Most Popular Business Publications
Content provided in partnership with
