UPDATE 2-Morgan Stanley to sell remaining stake in MSCI

martes 19 de mayo de 2009 00:22 CEST

* To offer 27.7 mln shares of MSCI

* MSCI shares fall 10 pct in after-hours trade (Adds details and background)

May 18 (Reuters) - Morgan Stanley (MS.N: Cotización) said it is selling its remaining stake in MSCI Inc MXB.N, the investment analysis and market index company spun-off from the investment bank in 2007, triggering a 10 percent fall in MSCI shares.

Morgan Stanley has been raising capital in the past two weeks, selling new shares and notes, after federal regulators announced that it would need to boost capital by $1.8 billion to weather a severe downturn.

The company also intends to repay $10 billion it received under the government's bank bailout program.

The bank had indicated that it may divest its entire stake in MSCI and has been selling off portions from time to time since the spin-off.

The latest, and final, offering will consist of 27.7 million shares of MSCI class A shares, the company said.

Based on MSCI's Monday close, the stake is worth $650.6 million.

MSCI, formerly known as Morgan Stanley Capital International, manages more than 100,000 equity, fixed income and hedge fund indices that form the basis for investment funds and derivatives. It also sells Barra risk management tools for portfolio managers.   Continuación...