The bulge bracket investment bank Morgan Stanley has made plans to acquire the online financial services firm E*Trade in an all stock transaction of $13 billion. Morgan Stanley will pay 1.0432 of its shares for each E*Trade share, equal to $58.74.
E*trade primary target market is individual investors as opposed to Morgan Stanley's more institutional clientele. In addition to an online trading platform, E*trade's financial services focus on individual investors including cash management, online banking, and employee stock ownership plans.
E*Trade manages the stock plan of employee's at hundreds of company's. Furthermore, the online financial services leader intends on opening brokerage accounts for these employees after they become available.
Morgan Stanley plans...