Morgan Stanley Prices Invesco Shares
NEW YORK (
) --
Morgan Stanley
(MS) - Get Report
stands to make a $664 million gross profit off the sale of
Invesco
(IVZ) - Get Report
shares gained in June.
Early Wednesday, the companies jointly announced that pricing of 30.9 million shares to be sold by an affiliate of Morgan Stanley were priced at $21.48 a share.
Invesco will not receive any proceeds from the secondary offering. Shares were dropping 4.9% to $22.07 shortly after the market opened. Morgan Stanley shares were rising 1.1% to $26.62.
Morgan Stanley as underwriter has agreed to purchase the Invesco common stock from its affiliate. It will then "offer the common stock from time to time in one or more transactions in the over-the-counter market or through negotiated transactions at market prices or at negotiated prices," the release said.
The share sale follows the investment manager's acquisition in June of Morgan Stanley's retail asset management arm, including the Van Kampen Investments. Under terms of the agreement, Morgan Stanley received $800 million in cash and 30.9 million shares in Invesco equity.
The two companies jointly announced the secondary offering on Tuesday, following Invesco's shelf registration with the
Securities and Exchange Commission
.
"This share sale is part of Morgan Stanley's strategy to reallocate capital into the firm's client-driven, flow businesses," Morgan Stanley's CEO James Gorman said in a statement Tuesday. "Invesco has become one of our key global partners across retail, asset management and institutional securities and we look forward to continuing to work closely together."
Invesco's CEO Martin Flanagan said the investment bank is "an important strategic partner to Invesco, and we look forward to continuing to grow our productive relationship by drawing on the resources and skills of our organizations to provide meaningful solutions for clients."
Morgan Stanley are acting as sole book-running manager and underwriter for the offering. Citigroup Global Markets and Merrill Lynch, Pierce, Fenner & Smith acted as co-managers for the offering.
Bank of America
(BAC) - Get Report
and
PNC Financial Services
(PNC) - Get Report
on Tuesday priced a
of shared of
BlackRock
(BLK) - Get Report
held by both banks. Combined the two banks stand to gain more than $8 billion from the share sale.
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Laurie Kulikowski
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