On the go: Willis Towers Watson is facing a shareholder class action in the US due to its planned merger with Aon, which would create a worldwide insurance broker worth $80bn (£65.5bn).
According to FundFire, Richard Carter, a shareholder of the company, alleges that WTW’s proxy statement about the planned merger, filed with the Securities and Exchange Commission in March, "is materially misleading and omits material facts”.
As a result, shareholders are unable to make a fair assessment on whether they should vote for the deal or not, the complaint alleged.
Mr Carter claims WTW’s financial projections and the summary of valuation analysis produced by Goldman Sachs, which advised the company on the merger’s financial matters, is misleading and incomplete.
The plaintiff demands that the company either halts the transaction until the alleged disclosure issues are solved, or, should the transaction close, pays damages.
The deal, announced on March 9, will see Aon pay $30bn in an all-share deal, after a similar transaction failed last year due to market speculation.
The consultancy firm anticipates that the merger – which is expected to be completed in 2021 – will provide annual pre-tax synergies and other cost reductions of $800m by the third full year of amalgamation.
The combined company will be named Aon and will maintain operating headquarters in London.
