Morgan Stanley and Citigroup Reach Deal on Smith Barney

Morgan Stanley and Citigroup agreed on Tuesday to value their brokerage joint venture, Morgan Stanley Smith Barney, at $13.5 billion, allowing Morgan Stanley to buy full control of the business at a favorable valuation.

That will set the price for which Morgan Stanley will buy an additional 14 percent stake in the business, raising its stake in the brokerage to 65 percent. It will buy a 15 percent stake from Citigroup by next June, with the goal of buying the entire operation by 2015.

The two firms agreed to the valuation of the brokerage on Monday afternoon, after the investment bank Perella Weinberg Partners submitted its own appraisal of Morgan Stanley Smith Barney’s worth, according to a person briefed on the matter.

Read Full Article from New York Times

- Posted: 2012-09-11 12:08:11

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