The following are the top stories in the Wall Street Journal. - Morgan Stanley is buying E*Trade Financial Corp in a $13 billion deal that will reshape the storied investment bank and firmly stake its future on managing money for regular people. - Sprint Corp and T-Mobile US Inc have agreed on new terms for their merger, as the wireless carriers race to close the deal after overcoming a federal court challenge.
FT premium subscribers can click here to receive Due Diligence every day by email. James Gorman told the FT’s Laura Noonan he feels like screaming from the rooftops (yes, even though his pay package has ...
“As we enter the latter part of the economic cycle and a slowdown in earnings growth we expect more transactions,” said Kian Abouhossein, analyst at JPMorgan, on the potential of other deals to follow Morgan Stanley’s $13bn acquisition of online brokerage ETrade. First, buying a company valued at around 14 per cent of its own market capitalisation will allow Morgan Stanley to boost annual revenues by far more than the 3 per cent increase it posted last year.
One of Virgin Galactic's bulls sounded a note of caution Thursday. Morgan Stanley analyst Adam Jonas warned investors that stock in the space-start up might be due for a dip.
(Bloomberg) -- Masayoshi Son will head to New York next month for the first time since the implosion of WeWork, seeking to persuade hedge funds and institutional investors that the fortunes of SoftBank Group Corp. have turned since the disastrous investment.The Japanese billionaire is scheduled to address investors on March 2. There, he could point to the approved sale of Sprint Corp., a rally in Uber Technologies Inc. shares and Elliott Management Corp.’s purchase of SoftBank stock as signs of progress at his company, said people familiar with the plans. It’s unclear where WeWork will fit ...
Because the college kid was crushing it in Ballard Power . Because the shoeshine man had finally picked a winner in Advanced Micro Devices . Consider these positives: first, Morgan Stanley bought E-Trade with stock, a smart move because E-Trade was coming in as a poor second to upstart Robinhood and had to do something.
Interactive Brokers Group Inc. was in talks with E-Trade Financial about merging their brokerage operations but decided the deal didn’t make sense, according to Interactive’s founder Thomas Peterffy.
The merger isn’t expected to be accretive to Morgan Stanley’s earnings until 2023 and will dilute tangible book value per share. Morgan Stanley (ticker: MS) is issuing its cheaply valued stock, which trades around 10 times projected 2020 earnings per share, and paying 15 times estimated 2020 projected earnings for E*Trade (EFTC). Morgan Stanley shares were down $2.18, or 3.9%, to $54.13, while E*Trade stock is up $10.72, or 24%, at $55.66.
(Bloomberg) -- T-Mobile US Inc. and Sprint Corp. agreed to new terms for their pending merger, a key step to completing a transaction that has now cleared most regulatory hurdles.Under an agreement announced Thursday, T-Mobile owners will get roughly 11 shares of Sprint for each of their shares. That’s an increase from a ratio of 9.75 previously -- and a more favorable deal for T-Mobile parent Deutsche Telekom AG.SoftBank Group Corp., Sprint’s majority owner, agreed to surrender 48.8 million T-Mobile shares that it will acquire in the merger to the combined company immediately after the ...
T-Mobile US, Inc. (NASDAQ: TMUS) and Sprint Corporation (NYSE: S) today announced that they have entered into an amendment to their definitive Business Combination Agreement to create the New T-Mobile. The Boards of Directors of T-Mobile and Sprint have unanimously approved the amendment. The amendment has no impact on T-Mobile’s previously stated outlook on the New T-Mobile’s synergies, long-term profitability and cash generation.
Wall Street suffered a setback Thursday with investors once again fixated on the negative implications of the coronavirus outbreak. Worries were revived as the number of new cases climbed in South Korea, Japan reported two new deaths and research suggested the virus was spreading faster than previously thought. The Dow lost more 100 points, while the Nasdaq fell for the first time in four sessions. The list of companies issuing coronavirus-related warnings grew longer Thursday: Norwegian Cruise Lines canceled all Asia voyages until the ...
Chamath Palihapitaya holds the stake after the Palo Alto-based blank-check company he created helped Richard Branson take his New Mexico-based space tourism company public last fall.
The rally in U.S. equities took a pause and the strong dollar got stronger on Thursday, rising to a three-year high against a basket of trading partner currencies, after a steep slide in the Japanese yen called into question its safe-haven status. Gold prices hit their highest in seven years as investors sought safe-haven assets after a rise in the number of new coronavirus cases in South Korea. Oil prices rose, supported by China's efforts to bolster its virus-weakened economy.
(Bloomberg) -- Morgan Stanley’s $13 billion deal to acquire E*Trade Financial Corp. is driven in part by the bank’s need to meet equity investors’ demands for the latest technology and digital trading tools -- and the same forces are reshaping the fixed-income market.A report released Thursday by Greenwich Associates found an appetite for “new and better digital products and tools” among fixed-income investors is fueling competition at banks. Kevin McPartland, head of market structure and technology research at Greenwich, said the elimination of trading commissions by many firms including ...
