Morgan Stanley to spin off Discover on June 30

By Lisa Kerner

Charlotte, N.C., June 1 – Morgan Stanley’s board of directors approved the spinoff of Discover Financial Services. Distribution of the outstanding shares of Discover common stock will be made on June 30 to Morgan Stanley stockholders of record as of the close of business on June 18.

Morgan Stanley said it will distribute one share of Discover common stock for every two shares of Morgan Stanley common stock outstanding. Stockholders will receive cash in lieu of fractional shares for amounts less than one full Discover share, a company news release stated.

The spinoff will make Discover an independent, publicly traded company listed on the New York Stock Exchange under the symbol “DFS.”

“We believe the spinoff of Discover will enhance value for the shareholders of Morgan Stanley, and position both companies for continued success,” Morgan Stanley chairman and chief executive officer John J. Mack stated in the release.

“As a well-capitalized company with an independent board of directors, Discover will be able to build on its strong brand and significant scale to execute its growth strategy. At the same time, we believe the spinoff of Discover will position Morgan Stanley to continue accelerating our growth and building on the positive momentum we have achieved across our securities businesses.”

Morgan Stanley is a New York-based financial services firm.

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