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AT&T picks AON retiree exchange over Towers Watson, says Deutsche

Deutsche Bank says AT&T (T) has picked AON Hewitt’s (AON) retiree exchange based on a letter from the CWA union to its retirees. Deutsche believes Towers Watson (TW) is no longer the clear leader in retiree exchanges, but points out AON Hewitt has strong existing relationships with AT&T. The firm lowered its price target for Towers Watson shares to $120 from $125 to reflect reduced estimates for exchange services and keeps a Buy rating on the stock.