Morgan to take MSCI public

By Aaron Siegel

Jul 31, 2007 @ 11:54 am (Updated 11:54 am) EST

Morgan Stanley plans to sell a minority interest in its subsidiary, MSCI Inc., in an initial public offering of Class A common stock.

MSCI provides investment decision support tools to equity, fixed income and multi-asset class investment decisions worldwide.

Its tools include the MSCI indices and the Barra portfolio risk analytics.

The IPO is expected to be completed by the end of the year and is subject to market conditions and regulatory approval.

The company said that it believes that it would be beneficial to divest its remaining ownership interest in MSCI.

"The initial public offering and potential separation of MSCI are consistent with Morgan Stanley's strategy to focus our people, capital and resources on our core businesses, including institutional securities, asset management and global wealth management," said John Mack, chairman and chief executive of Morgan Stanley, in a statement.

Morgan Stanley said that MSCI will file a preliminary registration statement with the Securities and Exchange Commission today.

Morgan Stanley owns 96.6% of MSCI's outstanding shares.

Capital Group International Inc. of Los Angeles owns the remainder of the shares.