Proxy Advisory Service Backs Washingon Mutual-Providian Deal

Institutional Shareholder Services, the influential proxy advisory service, is advising shareholders to approve Washington Mutual Inc.’s planned acquisition of credit-card issuer Providian Financial Corp.

The recommendation from the Rockville, Md., advisor comes about two weeks before Providian shareholders are set to vote on the $6.45 billion deal, and about two weeks after mutual-fund family Putnam Investments took the unusual step of declaring that it would oppose the merger. Putnam says it owns about 7.5 percent of Providian’s stock, making it one of the company’s top shareholders.

A smaller proxy-advisory firm, Egan-Jones Proxy Services, came to the opposite conclusion this week, recommending that clients vote against the deal. A third firm, Glass Lewis & Co., hasn’t made a recommendation yet on how shareholders should vote at the Aug. 31 meeting.

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