Morgan Stanley is expected to give notice it is exercising its right to purchase the additional stake in Morgan Stanley Smith Barney.
Morgan Stanley announced Thursday it has advised Citigroup Inc. that on Friday, it intends to give notice that it is exercising its right to purchase an additional 14% of MSSB.
As detailed by the terms of the joint venture, such notice will initiate a process of up to 90 days to determine the purchase price. Morgan Stanley has already received regulatory to acquire the additional stake. June 1 is the first date on which Morgan Stanley, which currently owns 51% of MSSB, may exercise its call option.
Morgan Stanley will file a Current Report on Form 8-K describing the process to determine the price. Morgan Stanley said in a press release Thursday that it does not plan to make any further comment on the purchase until the price is determined.
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