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Citigroup Said to End MSSB Fight With Morgan Stanley Overnight

Morgan Stanley and Citigroup Inc. executives raced overnight to end a two-month dispute over the value of their jointly owned brokerage, hashing out a deal that sent shares of both banks higher when markets opened today.

Perella Weinberg Partners LP, an investment bank hired to provide an independent valuation for Morgan Stanley Smith Barney, set off the flurry of talks yesterday by delivering a verdict below $13.5 billion after U.S. markets closed, people with direct knowledge of the matter said. The figure was so low -- in the bottom third of a range between Morgan Stanley’s $9 billion estimate and Citigroup’s $22 billion -- it triggered a contractual clause pushing the price on a 14 percent stake down even further.