Invesco is acquiring the retail asset management business of Morgan Stanley, including Van Kampen, for $1.5 billion in cash and stock. Invesco is paying $500 million in cash and tendering 44.1 million shares representing $1 billion in Invesco equity that will give Morgan Stanley a 9.4% minority stake. Morgan will continue to manage $267 billion in institutional assets.

“We are excited to expand the depth and breadth of our investment strategies, which will enable us to offer our clients a truly comprehensive range of investment capabilities through an expanded set of investment vehicles,” said Martin L. Flanagan, Invesco president and CEO.

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