Corporation Aon, the world's largest insurance broker, fell just more than a year after agreeing to buy a Hewitt Associates, Inc. for $ 4.9 billion in cash and stock.Aon fell $ 2.59, or 6.8 percent, to $ 35.75 at 9:33 am in New York Stock Exchange composite trading. Cash and stock deal Hewitt value of $ 50 per share, or 41 percent more than the closing price of the consulting firm on July 9, Chicago-based Aon said in a statement today.
"In the short term is negative," said Meyer Shields, an analyst with Stifel Nicolaus & Co., who "buy" rating on the stock in Aon. "Integration is always dirty, and Aon uses undervalued stock to pay for it."
Purchase Aon's largest, surpassing its $ 1.4 billion acquisition of reinsurance broker Benfield Group Ltd. in 2008, according to data compiled by Media. A company that earns commissions by matching buyers and sellers of insurance tends to increase revenue with the purchase of Hewitt, which provides payroll and consulting services to 3000 clients.
The broker will pay $ 25.61 cash and 0.6362 a share for each share of Aon Hewitt. Hewitt jumped 33 percent to $ 33.42. Share slide Aon was the most since it fell by 14 percent since May 1, 2009.