Washington Mutual Inc., Seattle, has agreed to sell its WM Advisors Inc. subsidiary to the Principal Financial Group, Des Moines, Iowa, for $740 million in cash.The sale is expected to generate a pretax gain for WaMu of at least $650 million. WaMu said the gain is expected to more than offset the financial impact of the sale of $140 billion in mortgage servicing rights (its government servicing portfolio and part of its conforming portfolio) to Wells Fargo Home Mortgage, Des Moines, as well as offset other strategic initiatives the company is undertaking. "This transaction is in keeping with our strategy to streamline our business model and sharpen the focus of our products and services, which target U.S. middle-market consumers and small businesses," said Kerry Killinger, chairman and chief executive of WaMu.
