Putnam Opposes WaMu/Providian Merger

At least one owner of stock in Providian Financial Corp., San Francisco, has come out in opposition to the proposed acquisition of the company by Washington Mutual Inc., Seattle.Boston-based Putnam Investments said it regards the price as inadequate. "In a consolidating industry and in light of the recently announced Bank of America/MBNA transaction, mono-line credit card companies such as Providian represent an increasingly scarce asset that should command a higher price," Putnam said. "By accepting a price well below the fair value of the Providian common stock, Putnam believes the merger would transfer significant value to Washington Mutual's existing shareholders, at the direct expense of Providian's shareholders." Putnam has the right to vote approximately 7.5% of Providian's common stock. The deal was originally valued at $6.45 billion, with 89% of the purchase price being paid in Washington Mutual stock. On June 6, the day the deal was announced, WaMu closed at $40.54. As of noon Aug. 1, WaMu was trading at $42.20, down $0.08, while Providian was trading at $18.92, up $0.02.