Deals & People March 30, 2009

Mercer-Callan Deal Abruptly Called Off

Six weeks after announcing Mercer would acquire Callan Associates to form one of the largest investment consulting operations, the two firms announced Monday that the deal was off.
Reported by

A brief statement from the firms Monday noted that the two organizations “mutually agreed to terminate their February 17, 2009 agreement,” but offered no explanation for the abrupt turnaround.

“Mercer and Callan said that they are committed to continuing to grow their respective businesses as independent firms and that each respect one another as competitors,” the companies said in the joint statement. “All Callan and Mercer client relationships will continue under their existing respective contractual agreements and consulting teams.”

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Under the February deal the combination of the New York-based Mercer and the San Francisco-based Callan would have resulted in an approximately 1,270-employee organization (see “Mercer Acquires Callan in Investment Consulting Consolidation’).

According to the February announcement, the transaction had been expected to close near the end of the first quarter of 2009. The terms of the agreement were not disclosed.


The Markets March 30, 2009

Pa. Health System Suspends 403(b) Match

The West Penn Allegheny Health System is temporarily suspending its match contribution to employee 403(b) accounts.
Reported by

According to the Pittsburgh Post-Gazette, the suspension starts this week and continues “until economic conditions improve.” The move affects about half of the health system’s 13,100 employees.

Spokesman Dan Laurent told the newspaper the health system is trying to do all it can to minimize any job losses, “but to do that requires other difficult decisions such as this.”

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