The Morgan Stanley Group confirmed that their acquiring E*Trade, a discount brokerage that operates in the United States and European Union. This announcement was confirmed via conference call on April 16th, noting that the takeover is slated to begin during the 4th quarter in 2020. This conference call pertained to the overall earnings with Stanley Morgan, meaning that their Executive Video President and Head of Corporate Strategy were present. All board executives with Stanley Morgan have actively participated in this acquisition period.
An official statement was provided through Morgan Stanley representatives. It read: “We filed our application with the Federal Reserve in March, and we will soon file the proxy statement/prospectus. E*TRADE will hold the shareholder vote this summer, and we remain on track to close the transaction in the fourth quarter.”
Initial Interest
Reports regarding Morgan Stanley’s interest into E*Trade began in February 2020. Initial data indicated that the Wall Street firm would spend $13 Billion to obtain the discount brokerage. This considerable cost enables Morgan Stanley to acquire all associated stocks with E*Trade, making the Morgan Stanley Group the most significant financial institution since the COVID-19 Financial Crisis. All other Wall Street banks have terminated their potential acquisitions to account for a possible fallout.
The Morgan Stanley Group will make payments of $58.75 Per Stock for the E*Trade Acquisition. This places the discount brokerage at a premium level, with their standard stock valuations on the SAP being $0.30 less than Morgan Stanley’s offer. Shareholders with E*Trade also receive specialized treatment, acquiring a single MS Share for each stock sold. Combining both these platforms will enable the Wall Street Bank to hold $3.1 Trillion in Client Assets, with a consumer base of more than eight million. It should be noted that this agreement cannot come into fruition until the US Securities & Exchange Commission approves the acquisition.
E*Trade Clients concerned about this acquisition period have until the 4th month to shut down their accounts. However, it should be noted that participating in the platform will have never been more critical. Clients will be assisting the American Multinational Banking System – Wealth Management Division, which is looking to protect the US Economy after the COVID-19 pandemic.
Tom Arran
