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Citigroup (C) and Morgan Stanley (MS) hire Perella Weinberg to appraise the value of Morgan...

Citigroup (C) and Morgan Stanley (MS) hire Perella Weinberg to appraise the value of Morgan Stanley Smith Barney. Citigroup, still holding a 49% stake and planning to sell more, values the brokerage at about $22B. Not surprisingly, Morgan - the buyer - sees a far lower value, reportedly $9B. (previous)
Comments (2)
  • Sensible Investor
    , contributor
    Comments (70) | Send Message
     
    If Citi is correct, that Smith Barney is worth 22 billion, then they should buy MS, with it's market cap slightly north of that figure. Clients and shareholders got a crappy deal with a smaller firm essentially trying to swallow an elephant whole. MS management and staff have no experience running a brokerage successfully, and they lack a bank, were downgraded, so who would want an account with less???? Citi has the bank, the management depth, and the experience. MS peaked at 107 in 2000 and sits just under 13 a dozen years later. Mike Mayo's comments, that MS should be broken up, is a presceint call, especially in light of the brokerage situation.
    25 Jul 2012, 07:24 PM Reply Like
  • wil3714
    , contributor
    Comments (1601) | Send Message
     
    C doesnt have capital to buy MS especially with exposure to Europe. C is selling off its assets to strengthen its balance sheet rather buying MS bad exposure.
    25 Jul 2012, 09:41 PM Reply Like
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