Morgan Stanley-Dean Witter Merger From MSDW to Morgan Stanley?
Article Details
Pub. Date
:
May, 2001
Product Name
:
Chartered Financial Analyst
Product Type
:
Case Study
Product Code
:
ANCA10105
Author Name
:
D. G. Prasuna
Availability
:
YES
Subject/Domain
:
Finance
Download Format
:
PDF Format
No. of Pages
:
Price
For delivery in electronic
format: Rs. 50;
For delivery through courier (within India): Rs.
50 + Rs. 25 for Shipping & Handling Charges
Download
To download this Article click on the button below:
Description
Four years have passed since the merger of Morgan Stanley and Dean Witter but the distinctions of each are yet to be blurred. Though the new name Morgan Stanley seemingly proclaims a single entity, the conditions inside the company's doors are far removed from that. However, there are certain indications of a change for the better.
The financial services industry has undergone a sea change in the last decade. While the Internet heralded an era of ceaseless assault on the traditional methods of functioning of brokers and traders, the wave of consolidation in the financial services industry, on the other hand raised the demands for a universal presence in order to stay successful and remain there. The merger of Morgan Stanley Dean Witter was an attempt made by both the companies to give a befitting answer to the challenges posed by the fast changing world of financial services. It was a proactive step anticipating the shift in the industry. The merger gave the firms the necessary momentum to be successful in the forthcoming era.
The
merger of renowned investment bank Morgan Stanley and with
the third largest brokerage house in the US, Dean Witter formed
the biggest Securities Company in the US. The deal first came
into the limelight in the beginning of February 1997. The
deal valued approximately at $10.2 bn was finally sealed by
the end of July the same year. The merger marked the culmination
of two individually strong players into a single, united and
powerful player to take over big wigs such as Merrill Lynch
and Goldman Sachs. The merged entity had a market capitalization
of $21 bn (which placed it ahead of Merrill Lynch at that
time) with offices in 38 countries and 3.2 mn retail customers
besides $270 bn in financial assets under management. The
deal came as a surprise to everyone since no one expected
the white shoe Morgan Stanley that served the super elite
to settle under the same roof with the rustic blue-collared
Dean Witter. The deal was not thought of for more reasons
than one.
