Power Corp. to Buy Marsh & McLennan's Putnam

Marsh & McLennan agreed in principle to sell Putnam Investments to Power Corp. of Canada for $3.9 billion, The Wall Street Journal reported Friday.

The deal still needs to be approved by Putnam employees, who are shareholders in the company, the Journal reported. If employees agree, a deal could be announced early next year, pending approval from funds shareholders.

The price is at the high end of estimates, which could help Marsh & McLennan's struggling shares, the Journal said. The stock is down about 3% for the year.

Montreal-based Power Corp. beat out the U.K.'s Amvescap and UniCredito Italiano of Italy for Putnam.