Pursuits
Morgan Stanley Prevails as MSSB Value Set at $13.5 Billion
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Morgan Stanley agreed to buy the rest of its brokerage joint venture from Citigroup Inc. at a fixed price that values the entire unit at $13.5 billion -- or about 40 percent less than Citigroup’s estimate two months ago.
Morgan Stanley will pay $1.89 billion for a 14 percent stake this year and $4.73 billion for the remaining 35 percent by 2015, New York-based Citigroup said today in a filing. The lender said it expects to take a $2.9 billion third-quarter charge, a sum that exceeds the average profit estimate by analysts in a Bloomberg survey.