NEW YORK – Morgan Stanley will buy the investment management firm Eaton Vance in a deal valued at about $7 billion.
Eaton Vance shareholders will receive $28.25 per share in cash and 0.5833 of Morgan Stanley common stock, or approximately $56.50 per share.
Based on the $56.50 per share, the amount paid to Eaton Vance shareholders will consist of about 50% cash and 50% Morgan Stanley common stock.
Eaton Vance shareholders will also receive a one-time special cash dividend of $4.25 per share to be paid before the transaction's closing by Eaton Vance to its shareholders from existing balance sheet resources.
Shares of Eaton Vance Corp. spiked 47% at the opening bell Morgan Stanley rose slightly.