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Morgan Stanley chief executive James Gorman defended the bank’s recently announced bid for asset manager Eaton Vance despite the high price tag of the deal.
Earlier this month, the New York-based bank announced its plans to acquire the Boston-based investment manager for $7 billion in cash and stock.
“I’m not ashamed to say it’s fully priced, but this is a quality asset,” Gorman told analysts on the bank’s 2020 third-quarter earnings call. “We will get the expenses out of this. We will consolidate this. We will generate revenues from it.”
“I’m positive that this deal is going to deliver,” he added.
Read more: Why Morgan Stanley’s $7 billion bid for a storied asset manager gives it a leg up on rivals and signals more deals to come
The announcement of the Eaton Vance deal came just six days after closing its all-stock E-Trade acquisition, which was valued at $13 billion when it was announced in February. The closure of the E-Trade deal and announcement of the Eaton Vance acquisition in such quick succession had some industry watchers wondering if Morgan Stanley might be on the precipice of a buying frenzy.
But Gorman seemed to cast cold water on that theory on …read more
Source:: Businessinsider – Finance