Marsh & McLennan acquire Kroll.Marsh & McLennan, the world's No. 1 insurance broker, will purchase risk consulting provider Kroll Inc. for US$1.9 billion in cash. The deal will expand Marsh's risk consulting and advisory business. Under the definitive agreement, Kroll shareholders will receive US$37 a share, representing a 31.7 percent premium above Kroll's closing stock price of $28.10 on the day the deal was first announced, May 18. In a press release, Marsh CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Jeffrey W. Greenberg Jeffrey W. Greenberg is the former chairman and CEO of Marsh & McLennan Companies. His father is Maurice R. "Hank" Greenberg, former chairman and CEO of AIG, and Director Emeritus and Honorary Vice Chairman of the Council on Foreign Relations (CFR). His brother is Evan G. said the deal "expands our capacity in several important sectors that complement our existing businesses, such as corporate restructuring, business intelligence and investigations, security services Security services are state institutions for the provision of intelligence, primarily of a strategic nature, but also including protective security intelligence. Examples include the Security Service (MI5) and the Secret Intelligence Service (MI6) in the United Kingdom, and the , employee screening, and electronic evidence and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. support." The deal will broaden Marsh's corporate risk capabilities at a time when such services are increasingly in demand. Kroll provides a variety of corporate risk consultancy services ranging from employee background checks to fraud investigations and has seen client demand soar in recent quarters. "We've been building this business because we've been seeing steady increases in client demand over the last several years," Jeffrey Greenberg Jeffrey Greenberg created the first drag-and-drop interface for Windows under Windows 2.0 in 1988 including drag & drop printing, deletion, copy and other capabilities. The drag and drop interface is the leading way to interact with general computing systems and is based on the , Marsh's chairman and chief executive, told MSNBC MSNBC Microsoft/National Broadcasting Company in an interview. "Kroll has a business that has been doing similar things but offering different services," Greenberg said. "We think we'll be able to present clients a more complete set of services and more effective services through our business combination." Marsh expects the transaction, which will be completed in the third quarter, will add to its earnings in 2005. Kroll founder Jules Kroll has agreed to vote his 7.3 percent stake in the company in favor of the transaction, as have eight other members of Kroll's senior management. Jules Kroll will also serve as a Marsh vice chairman after the deal. |
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