Invesco snaps up Morgan Stanley unit in $1.5b deal

NEW YORK: Morgan Stanley said yesterday it will sell its retail asset management business, including the Van Kampen division, to money manager Invesco Ltd for $1.5 billion in a move to focus on institutional clients.

The deal, which includes $500 million in cash and 44.1 million shares, will make Morgan Stanley Invesco's largest shareholder, with a 9.4 percent equity stake. It boosts Invesco's assets under management by $119 billion to about $536 billion.

New York-based Morgan Stanley said the sale allows it to focus on institutional clients such as pension plans, endowments, sovereign wealth funds and central banks, among others.