Invesco 3Q profit off 20 pct; shares up after deal

posted: 38 DAYS 3 HOURS AGO

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ATLANTA -Invesco Ltd. said Tuesday its third-quarter profit fell 20 percent as revenue declined in results announced after the investment manager said it is acquiring Morgan Stanley's retail asset management business, including Van Kampen Investments.

The company's shares were up 35 cents, or 1.5 percent, to $23.47 Tuesday afternoon.

In the quarter that ended Sept. 30, Invesco earned $105.2 million, or 24 cents per share, meeting an analyst prediction from a Thomson Reuters survey. That compares to the $131.8 million, or 33 cents per share, it earned a year earlier.

Revenue fell 15 percent to $705.8 million from $827.2 million. Analysts had expected $687.4 million.

On Monday, Atlanta-based Invesco said it will acquire the Morgan Stanley unit in a cash and stock deal valued at $1.5 billion.

The deal, which includes $500 million in cash and 44.1 million shares, will make Morgan Stanley Invesco's largest shareholder, with a 9.4 percent equity stake. It boosts Invesco's assets under management by $119 billion to about $536 billion.

The transaction, which has been approved by the boards of both companies, is expected to close in mid-2010.

New York-based Morgan Stanley said the sale allows it to focus on institutional clients such as pension plans, endowments, sovereign wealth funds and central banks, among others.

2009-10-20 14:36:29