(Source: Business Wire)
Fifth graph, fourth sentence should read: The restructured MSIM would
have approximately $267 billion in assets under management on a
pro-forma basis as of September 30, 2009 (sted The restructured MSIM
would have approximately $267 billion in assets under management on a
pro-forma basis as of June 30, 2009).
The corrected release reads:
MORGAN STANLEY RESTRUCTURES INVESTMENT MANAGEMENT UNIT TO FOCUS ON
INSTITUTIONAL CLIENT BASE
Will Sell Retail Asset Management Business, Including Van Kampen
Investments, to Invesco and Maintain Minority Stake in Combined Firm
Long-Only Institutional Business to be Led by Its Portfolio Managers
and Dedicated to Fundamental Research and Active Management
Morgan Stanley (NYSE: MS) today announced as part of a restructuring of
its investment management division a definitive agreement to sell its
retail asset management business, including Van Kampen Investments,
Inc., to Invesco Ltd. (NYSE: IVZ), a leading independent global
investment management company. This transaction allows the Firm to focus
on its institutional client base -- including corporations, pension
plans, large intermediaries, foundations and endowments, sovereign
wealth funds, and central banks, among others.
Under the terms of the definitive agreement, Invesco will purchase
Morgan Stanley's retail asset management business, operating under both
the Morgan Stanley and Van Kampen brands, in a stock and cash
transaction valued at $1.5 billion. Morgan Stanley will receive a 9.4
percent minority interest in Invesco, allowing the Firm to participate
in the future growth of the combined Invesco and Morgan Stanley/Van
Kampen businesses. The transaction, which has been approved by the
Boards of Directors of both companies, is expected to close in mid-2010,
subject to customary closing conditions and regulatory approvals.
James Gorman, Co-President of Morgan Stanley, said, "Our objective in
Asset Management is straightforward: deliver superior performance for
our clients, return our investment business to strong and consistent
profitability, and reignite a best-in-class investment culture. This
transaction is an important step in that direction. By taking a minority
interest in Invesco, Morgan Stanley will be able to realize significant
value in partnership with a world-class player.
"The combination of Invesco's strong and diversified product portfolio
with Van Kampen's own product strengths and leading distribution
capabilities will create a formidable new contender in the retail space
-- with the size and scale necessary to compete in today's rapidly
changing and consolidating marketplace.
