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Morgan Stanley Reportedly Weighs BlackRock Stake

It is in negotiations over a controlling interest, CNBC says.
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Updated from 7:10 a.m. EST

Morgan Stanley

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reportedly is in negotiations to buy a controlling stake in


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, the publicly traded bond-fund titan whose business has wowed Wall Street for two decades.

The negotiations are in advanced stages and could receive the blessing of BlackRock's majority owner,

PNC Financial

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reported Friday.

BlackRock's market cap is $7.6 billion. The stock has been a solid performer since being spun off by PNC, steadily climbing from the low-teens in 1999 to a Thursday close of $119.35. The company traces its lineage to Blackstone Group, which helped found it to manage institutional assets and augment its powerful private equity operation in 1987.

The size of the stake and potential price weren't specified in the


report. Morgan Stanley's recently appointed CEO, John Mack, is said to be friends with BlackRock CEO Larry Fink, who built the company along with Ralph Schlosstein, who remains its president.

In early trading, BlackRock shares rose $10.75, or 9%, to $130.10. PNC jumped $2.23, or 3.5%, to $65.90. Morgan Stanley fell 41 cents, or 0.7%, to $58.94.