The rumor mill was in full force on Friday as buzz circulated that insurance broker
Willis Group Holdings Ltd (NYSE:
WSH) had approached bigger rival
Marsh & McLennan Companies (NYSE:
MMC) about a potential takeover.
Though a sale of Marsh & McLennan has been brought up before on Wall Street, analysts are hesitant to believe that Willis may seriously be interested in an acquisition, given that the company’s market cap is far less than that of its target (see article from Reuters). Aggressive strategy and a goal to be at the top of the industry, however, may have Willis attempting the impossible.
NewsVisual created an
IntellectSpace Knowledge Map of the common ties shared between
Willis and
Marsh & McLennan, in order to understand how their corporate network may motivate a deal.
One direct connection between Willis and Marsh & McLennan is present through Douglas Smith, who was the Chairman of Marsh & McLennan’s private equity and mergers and acquisition practice and Deputy Chairman of Willis’ mergers and acquisitions group. The fact that Smith would essentially be the closest thing to an expert in the business behind a deal between the companies makes him a valuable asset should Willis pursue a takeover.
As illustrated on this Knowledge Map, the companies are also linked through multiple common connections. Joseph A Califano Jr (Director of Willis) is a Member of the Council on Foreign Relations. A number of former Marsh & McLennan Directors and Executives are also tied to the council, as well as Adele Simmons, who is a current Director of the company.
Califano may also be well acquainted with Marsh & McLennan Director Gwendolyn S King, as each has served in various positions of leadership for key US government affairs sectors.
While a takeover of Marsh & McLennan by Willis would certainly be a difficult feat, the combination of investor support, a strong corporate network and fierce determination may eventually lead to a successful deal.
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