Wednesday, September 12, 2012

Wow! Smith Barney valued at $13B!


James Gorman’s big retail brokerage gamble is officially on, the New York Post guru sez.
The Morgan Stanley CEO scored a victory in landing a favorable decision from third-party consultant Perella Weinberg valuing brokerage unit Morgan Stanley Smith Barney at $13.5 billion.  Now the Morgan Stanley boss has to make it work. He has bet the future success of the investment bank, in large part, on the back of the 17,000-strong brokerage franchise.

As first reported by The Post yesterday, Morgan Stanley emerged as the big winner in a contested valuation of the brokerage business.  Morgan Stanley valued it at $9 billion; co-owner of the joint venture, Citigroup, valued it at $22 billion.

Perella’s decision enables Morgan Stanley to purchase the remaining 49 percent in the brokerage over the next two year at a lower price....

Find out more at http://www.nypost.com/p/news/business/smith_barney_valued_at_s06idbuwr9czVPcNi1AHUM

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