MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Tuesday, March 27, 2012 "Mr. Gorman Has the Better Hand" Will Morgan Stanley buy out Citigroup's 49 percent stake in their Morgan Stanley Smith Barney joint venture, and if so, when? David Reilly of Wall Street Journal takes a look at the different factors weighing on Morgan Stanley chief James Gorman and Citi chief Vikram Pandit. When Citi and Morgan Stanley sealed the $2.7-billion deal to create the giant joint venture wirehouse three years ago, they specifically noted that "Citi will continue to own a significant stake in the joint venture at least through year five," i.e. 2014 [see MFWire.com, 1/13/2009]. Eight months later Pandit reportedly said that he "anticipates" Morgan Stanley completely taking over MSSB [see MFWire.com, 9/17/2009], and 14 months after that Gorman discounted a story claiming that Morgan Stanley might delay buying up more of MSSB [see MFWire.com, 11/9/2010]. The WSJ reports that Citi values MSSB at $20 billion while Morgan puts the joint venture's worth at between $14 billion and $16 billion. The paper concludes "Mr. Gorman has the better hand" and "should wait for Mr. Pandit to give ground on price." Printed from: MFWire.com/story.asp?s=39570 Copyright 2012, InvestmentWires, Inc. All Rights Reserved |