MORGAN STANLEY MADE ITS BIGGEST DEAL SINCE THE FINANCIAL CRISIS; MARKET LOOKING POSITIVE
In the Premarket trading session on Monday, Morgan Stanley’s stock was trading at 41.18- higher by 0.91% as compared to its previous close.
The Wall Street bank announced today that it will buy Solium Capital, a Canadian company that prepares stock plans for start-ups, for $900 million. The company further disclosed that it will pay C$19.15 per share for the Calgary-based Solium, a 43% premium over its Friday closing price of C$13.36. Morgan Stanley expects the transaction to close by 30th June.
The deal is Morgan Stanley’s biggest since the financial crisis. The company’s chief executive James Gorman told The Wall Street Journal that he’d like to “do more” acquisitions moving forward.
On the technical front, the current price is below the MA5 (41.87) and the MA20 (41.56). The current price is below the middle line of the Bollinger Bands but is heading upwards. The stock is expected to trade higher today.
TRADE SUGGESTION- LIMIT BUY AT 41.10 TAKE PROFIT AT 41.70 STOP LOSS AT 40.80