New York - Invesco Ltd has agreed to buy Morgan Stanleys retail investment management business for 1.5 billion dollars in stock and cash, the two companies confirmed. It was the industrys third takeover of an asset manager from a loss-ridden bank in four months, Bloomberg financial news agency reported Tuesday.
The Atlanta, Georgia-based Invesco on Tuesday reported a 20-per- cent drop in third-quarter earnings compared to the same period last year, from 131.8 million dollars to 105.2 million dollars. The company expects the deal to create 70 million dollars in savings from combining distribution platforms and locations, chief financial officer Loren Starr told Bloomberg.
The acquisition from Morgan Stanley will give Invesco about 119 billion dollars in client money including the Van Kampen unit, bringing its assets under management to about 536 billion dollars.
Morgan Stanley will receive 500 million dollars in cash and 1 billion dollars in stock, making it Invescos largest shareholder with a 9.4 per cent stake.
Morgan Stanley is revamping its asset-management businesses after the division reported six consecutive quarterly losses totaling 1.67 billion dollars.
