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Thursday, March 28, 2024

Morgan Stanley announces acquisition worth billions

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The US investment bank is taking over the American asset manager Eaton Vance for seven billion dollars.

The major US bank Morgan Stanley is expanding its asset management business with a billion-dollar purchase. For seven billion dollars in cash and shares, the equivalent of almost six billion euros, the money house is taking over the American asset manager Eaton Vance, as the companies announced in a joint press release on Thursday. Eaton Vance reportedly has more than $ 500 billion in assets under management.

Morgan Stanley wants to make itself more independent of investment banking and to screw up its commission income. Just last week, the major bank completed the $ 13 billion takeover of the low-cost broker E * Trade.

Eaton shareholders will receive $ 28.25 in cash and 0.5833 Morgan Stanley securities per share. Compared to the closing price of Eaton shares on Wednesday, this corresponds to a premium of 38 percent. Eaton shares rose 36 percent to $ 55.79, while Morgan Stanley shares lost 2.6 percent.

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