Deals
Morgan Stanley Receives Approval to Purchase Smith Barney
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Morgan Stanley will buy the rest of its wealth-management joint venture with Citigroup Inc. as soon as next week, capping a four-year effort to reshape the investment bank into a more stable firm reliant on the retail-brokerage business.
Morgan Stanley will pay $4.7 billion in cash for the 35 percent of the business it doesn’t already own after receiving regulatory approval, the New York-based company said today in a statement, adding that it will take a $200 million charge in the second quarter related to the purchase. The brokerage will also redeem $2.03 billion of preferred interests owned by Citigroup, according to the statement.