Notable Mergers and Acquisitions of the Day: MGM, MS/IVZ, MPS

October 20, 2009 10:34 AM EDT

• Kirk Kerkorian's Tracinda Corporation announced today that it is exploring the possibility of strategic partnerships or other alternatives with respect to its investment in MGM MIRAGE (NYSE: MGM). Tracinda stated it would not engage in any such transaction until after CityCenter, the 67-acre city within a city on the Las Vegas Strip which is fifty percent owned by MGM MIRAGE, has successfully opened on December 16, 2009.
  
  Tracinda believes there is substantial unrecognized value in MGM MIRAGE and CityCenter that is not reflected in the market value of MGM MIRAGE’s stock. Tracinda may decide not to pursue strategic partnerships or other alternatives, and may not ultimately enter into any such transactions.
  
  
• Morgan Stanley (NYSE: MS) announced yesterday that it will restructure the firm to turn its efforts towards its institutional client base by selling its retail asset management business, most notably including Van Kampen Investments, to Invesco Ltd (NYSE: IVZ).
  
  This move will allow Morgan Stanley’s corporations, pension plans, large intermediaries, foundations and endowment, sovereign wealth funds and central banks to receive the company’s focus.
  
  "Our objective in Asset Management is straightforward: deliver superior performance for our clients, return our investment business to strong and consistent profitability, and reignite a best-in-class investment culture,” stated James Gorman, Co-President of Morgan Stanley.
  
  Morgan Stanley will gain an important partnership with a global-impact partner with the minority interest with Invesco. Invesco, under a definitive agreement will purchase the retail asset management business for a stock and cash transaction at $1.5 billion.
  
  "The combination of Invesco's strong and diversified product portfolio with Van Kampen's own product strengths and leading distribution capabilities will create a formidable new contender in the retail space - with the size and scale necessary to compete in today's rapidly changing and consolidating marketplace,” Gorman stated.
  
  Morgan Stanley Investment Management (MSIM) will have several distinctive institutional-focused businesses including long-only institutional, direct hedge fund, liquidity, and merchant banking businesses. As of June 30, 2009 approximately $267 billion in assets will be available for MSIM on a pro-forma basis.
  
  "We are refocusing our efforts towards greater profitability from a solid foundation, building on the strength and momentum already achieved in key businesses,” stated Stu Bohart, Co-Head of MSIM, who will now chair the Operating Committee that will lead the company’s long-only business.
  
  
• MPS Group, Inc. (NYSE: MPS) announced that it has entered into a definitive agreement to be acquired by Adecco Group. The transaction will take place for $13.80 per common share, for a total value of approximately $1.3 billion. This represents a premium of 24% over yesterday's closing stock price and a premium of 27% and 36%, respectively, over the average closing stock price (VWAP) during the last 30 and 90 calendar days. The Board of Directors of MPS Group unanimously approved the transaction.
  
  The transaction is expected to close in the first quarter of 2010 and is subject to MPS Group shareholder approval, antitrust clearance and certain other regulatory approvals and closing conditions. The transaction is not subject to a financing contingency and will be financed with Adecco's current cash resources as well as existing financing capabilities.
  
  BofA Merrill Lynch is acting as financial advisor and Jones Day is acting as legal counsel to MPS Group.

To see all the Mergers & Acquisitions for today in real-time go to http://www.streetinsider.com/Mergers+and+Acquisitions

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• Kirk Kerkorian
• Tracinda Corp.
• Morgan Stanley
• Merrill Lynch
• Banc of America
• Notable Mergers and Acquisitions
• Hedge Funds

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