Providian Financial Shareholders to Vote on Acquisition by Washington Mutual

By Allison Linn, AP

Is Washington Mutual Inc.’s plan to acquire Providian Financial Corp. a match made in financial heaven or a raw deal for Providian investors?

That’s the question Providian’s investors will face Wednesday when they are asked to approve the acquisition.

The stock and cash deal — valued at $6.45 billion, or around $18.71 per share — is being opposed by one of Providian’s largest shareholders, Putnam Investments LLC, and the investment research firm Glass, Lewis & Co. But others, including influential advisory firm Institutional Shareholder Services, have recommended that shareholders approve the deal.

Seattle-based Washington Mutual and San Francisco-based Providian, a credit card issuer, have both repeatedly said that they think the deal is fair. Washington Mutual expects to use Providian to break into the $800 billion credit card industry.

For this complete story, please visit Providian Holders to Vote on Acquisition.