Friday, June 21, 2013

Money Honey: Morgan Stanley to buy final 35% of Smith Barney/ Wealth Mgmt

 According to MarketWatch: Morgan Stanley MS -2.11%  announced on Friday it has received regulatory approval to buy the final part of the Morgan Stanley Smith Barney Holdings LLC from Citigroup Inc. C -2.94%  . The purchase of the final 35% will be completed this month, fulfilling a key strategic priority, said the firm in a statement. Morgan Stanley will notify Citigroup of its intent to buy the remaining share for the established price of $4.7 billion in cash and the closing is expected to be around or on June 28, 2013. The firm will record a negative adjustment to capital of approximately $200 million to reflect the difference between the purchase price and its carrying value, negatively impacting diluted earnings per share in the second quarter. MSSBH will redeem Class A preferred interests owned by Citigroup for $2.03 billion at the time of the transaction. Morgan Stanley shares were up 0.5% in premarket trading.

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