(Reuters) - Morgan Stanley <MS.N> on Tuesday said Morgan Stanley and Citi will form an industry-leading wealth management business through joint venture. Highlights:
* Says Citi will exchange 100 percent of its Smith Barney, Smith Barney Australia and Quilter units for a 49 percent stake in the joint venture and an upfront cash payment of $2.7 billion
* Says will exchange 100 percent of its global wealth management business for a 51 percent stake in the joint venture
* Says transaction approved by the boards of directors of both companies
* Says after year three, co and Citi will have various purchase and sale rights for joint venture
* Says at closing, Citi will recognize a pre-tax gain of approximately $9.5 billion
* Says Citi will continue to own a significant stake in the joint venture at least through year five
* Says joint venture is expected to achieve cost savings of approximately $1.1 billion
* Says co-president James Gorman will serveas chairman of the new company
Publié le 13 janvier 2009 Copyright © 2009 Reuters
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