February 27, 2007 |
Morgan Stanley and Apax Partners Worldwide agreed to purchase Chicago-based Hub International Ltd. for $1.8 billion in the second buyout of a U.S. insurance brokerage in six weeks. Hub said shareholders would receive $40 a share in cash, 16% more than the closing price on Feb. 23. The transaction, which includes $145 million of debt, comes after Goldman Sachs Group Inc.'s buyout unit said Jan. 16 it agreed to acquire USI Holdings Corp., the ninth-largest broker, for about $1.
July 22, 2006 |
The Securities and Exchange Commission has asked Morgan Stanley Chief Executive John Mack to testify regarding what role he may have played in an insider trading case involving hedge fund Pequot Capital, Morgan Stanley said Friday. A former SEC investigator has said he was fired after pursuing evidence that Mack allegedly had tipped off Pequot, where Mack briefly served as chairman, about a pending merger. Mack has denied any wrongdoing, as has Pequot.
August 18, 2005 |
Morgan Stanley on Wednesday said it would keep its Discover credit card unit, resisting pressure from shareholders to sell it. The company did say it would shed an aircraft leasing unit hurt by the weakened airline industry. The decisions marked the first major strategic steps by John Mack, whom Morgan Stanley brought back seven weeks ago to replace Philip Purcell as chairman and chief executive.
August 17, 2005 |
Morgan Stanley, the world's largest securities firm, on Tuesday named Merrill Lynch & Co.'s James Gorman to run its retail brokerage, a business whose slumping profit spurred the firm to begin cutting 1,000 jobs earlier this month. Gorman, 47, starts in February, replacing John Schaefer, 53, who will leave Morgan Stanley by the end of the year. Gorman will join Morgan Stanley's management committee and report to acting President Zoe Cruz, the firm said.
August 3, 2005 |
The NASD said Tuesday that it had fined an arm of investment firm Morgan Stanley $1.5 million and ordered the firm to pay more than $4.6 million in restitution for failing to adequately supervise its fee-based brokerage business. More than 3,500 Morgan Stanley DW Inc. customers will be receiving restitution, said the NASD, formerly the National Assn. of Securities Dealers. Fee-based brokerage accounts are an alternative to traditional commission-based accounts.
July 8, 2005 |
Former Morgan Stanley Chairman and Chief Executive Philip J. Purcell will receive $43.9 million in bonus money and $250,000 a year for life, plus health benefits and office help, as part of his severance from the company he led for eight years. Purcell, 61, will receive half his bonus money next Jan. 15 and the rest one year later. The bonus will be adjusted by a percentage roughly equal to Morgan Stanley's annual pretax earnings growth.