Morgan Stanley Buys Van Kampen to Build Fund Roster
Roeder, David, Daily Herald (Arlington Heights, IL)
Byline: David Roeder Daily Herald Business Writer
Morgan Stanley Group Inc., investment banker to the rich and powerful, on Monday aimed for a bigger cut of Americans' mutual fund portfolios.
The company, the nation's fifth-largest securities firm, said it is buying the parent of Van Kampen American Capital Inc., based in Oakbrook Terrace, for at least $745 million in cash and preferred stock.
"All of a sudden Morgan Stanley is a force in the $3.1 trillion mutual fund business," said Richard Chimberg, editor of Investment Management Weekly, an industry publication.
The sale makes Morgan Stanley the second-largest Wall Street firm in the mutual fund arena, behind Merrill Lynch. Van Kampen brings to the match a historic strength in bond funds and retail distribution, while Morgan Stanley has concentrated on stocks and international investing.
Executives said they plan no layoffs or office consolidations. Van Kampen has about 1,200 employees, including 500 in Oakbrook Terrace.
Eighty percent of Van Kampen's parent, VK/AC Holding Inc., has been owned by Clayton, Dubilier & Rice Inc., a New York-based buyout firm.
As part of the deal, Morgan Stanley said it would assume $430 million in debt. The purchase price will rise if some of that debt is retired before the expected closing Nov. 30, but it cannot exceed $1. …