News, analysis and personal reflections on the markets & the financial sector

Tuesday, October 20, 2009

Morgan Stanley sells investment-management business

Fund manager Invesco said Monday that it had agreed to buy Morgan Stanley's retail investment-management business for $1.5 billion in stock and cash. Morgan Stanley will receive $500 million in cash and $1 billion in stock, remaining the largest shareholder in the business, with a 9.4% stake. "This combines two midsize firms to create more scale in an industry where we think the largest companies are pretty well-positioned," said Jeffrey Hopson, an analyst with Stifel Nicolaus.

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