2/20/2020, 1:38 PM (Source: TeleTrader)
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Morgan Stanley to acquire E-Trade for $13B

American investment bank Morgan Stanley is poised to purchase E-Trade Financial Corporation for $13 billion, the bank announced in a press release on Thursday. The deal, for which Morgan Stanley would pay $58.74 per E-Trade's share, is expected to be closed in the fourth quarter of the year. The said price represents a 30% premium on E-Trade's yesterday closing price.

"E*TRADE represents an extraordinary growth opportunity for our Wealth Management business and a leap forward in our Wealth Management strategy," Morgan Stanley's CEO James Gorman said the release, adding that the acquisition represents a continuation of the "decade-long transition of our Firm to a more balance sheet light business mix, emphasizing more durable sources of revenue."

Morgan Stanley's shares dipped 4.65% in premarket trading, while E-Trade's stock added 0.91%.

Breaking the News / GG