AJG - AON expects up to $400M additional charges in Q3; stock slips from week's high
AON Plc (NYSE:AON) stock dips 1.6%, retreating some from large gain it made earlier this week when it terminated its proposed acquisition of Willis Towers Watson (WLTW +1.1%). While the company paid WLTW a $1B termination fee over the failed deal, which had already been announced, AON expects an additional $350M-400M of charges in Q3 related to terminating the WLTW deal, AON Chief Financial Officer Christa Davies said during the company's earnings call. Specifically, the charges are related to transaction costs and compensation expenses, and a small number of expenses related to steps in its AON United operating model. "They will all be incurred in Q3 as part of a clean break with Willis Towers Watson," she said. "Excluding the termination fee, our performance and outlook for free cash flow growth in 2021 and going forward remained strong." The company continues to expect "to drive free cash flow growth over
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AON expects up to $400M additional charges in Q3; stock slips from week's high