Morgan Stanley: to acquire financial company E*Trade

(CercleFinance.com) - Morgan Stanley said on Thursday that it has entered into a definitive agreement under which it will acquire the New York-based financial company E*Trade in an all-stock transaction valued at approximately 13 billion dollars.


Under the terms of the deal, E*Trade shareholders will receive 1.0432 Morgan Stanley shares for each share they own, representing a price of about 58.7 dollars, based on last night's closing price.

In comparison, the E*Trade shares closed at 44.9 dollars on Wednesday evening.

Morgan Stanley said the acquisition will significantly increase the scale and breadth of its wealth management franchise.

E*Trade - which operates a discount online broker and a bank - has over 5.2 million client accounts with over 360 billion dollars of retail client assets.

This will add to Morgan Stanley's existing 3 million clients and 2.700 billion dollars of client assets.

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