P.M. BRIEFING : $778-Million Brokerage Formed

Willis Faber PLC, a British insurance broker, and Corroon & Black Corp. of the United States today said they have agreed to a merger that would create one of the world’s largest insurance brokerage firms.

The new company, to be named Willis Corroon PLC, will be 60% owned by shareholders of the British group and 40% owned by Corroon shareholders, they said. The company is expected to have 1990 revenue of about $1 billion.

Corroon & Black shareholders are to be given 7.8 Willis Faber shares for every Corroon & Black share they hold, they said.

The deal values Corroon & Black at $778 million, based on Willis Faber’s closing stock price of $4.86 on Friday.

Willis Faber’s shares were down 45 cents to $4.41 on London’s Stock Exchange by midday today.

Robert Elliott, chairman of Willis Faber, is to become chairman of Willis Corroon, and Richard Miller, now chairman and chief executive of Corroon & Black, will become chief executive of the new company.