Deals & People August 21, 2009

Morgan Stanley Reportedly Pondering Van Kampen Deal

Reuters, quoting anonymous sources, said discussions about a deal for all or a portion of Van Kampen are at an early stage.

Reported by

A Reuters report, quoting anonymous sources, said Morgan Stanley is considering a deal for its Van Kampen Investments Unit as part of a review aimed at correcting problems with the asset management business.

Reuters said a deal is not imminent and that a suitor could potentially walk away with either the whole company or a portion of it.

The news report speculated that the business could attract interest from companies such as Invesco Ltd, Nuveen Investments, Federated Investors, or Franklin Resources, according to sources.

Van Kampen, which managed about $85 billion in assets as of November 30, offers open- and closed-end mutual funds, unit investment trusts, retirement products, and investment platforms.

Morgan Stanley has posted $2.64 billion in operating losses in its asset management business since the start of 2008. Chief Executive John Mack last month promised his firm was “taking steps to deliver better results” in asset management and other crucial businesses, Reuters reported.

Deals & People August 21, 2009

A New Name for the DJIA?

The Dow Jones Industrial Average (DJIA), long an iconic measure of the stock market’s performance, may soon have a new name.

Reported by

The Wall Street Journal said Dow Jones & Co. Inc. has held exploratory talks with potential buyers for its equity indexing property in a process conducted by Goldman Sachs. The news report indicated the talks could lead to a joint venture or some other type of corporate combination.

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According to the Journal, the indexes business, which creates and licenses indexes for use on mutual funds, exchanged-traded funds, and other products, is a relatively stable and profitable unit for Dow Jones.

For the nine months ending September 2007, the last period reported by the then-independent company, the index unit posted revenues of $101 million. The DJIA was introduced in 1884.

The Journal said representatives from Dow Jones, the News Corporation, and Goldman Sachs all declined to comment.

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