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Sources: Morgan Stanley’s sale of Van Kampen close, with Invesco the likely suitor

Morgan Stanley is close to completing a deal to sell Van Kampen Funds Inc. to Invesco Ltd., according to industry sources familiar with the deal.

Morgan Stanley is close to completing a deal to sell Van Kampen Funds Inc. to Invesco Ltd., according to industry sources familiar with the deal.
The brokerage giant has held several conference calls with clients to discuss the deal, said one source, who asked not to be identified.
Another source added that a deal was agreed upon formally last week and that Morgan Stanley and Invesco are finalizing the details of the transaction.
Morgan Stanley will likely keep a stake in Van Kampen, which Morgan Stanley bought in June 1996, according to the source.
His comments echoed those of other industry insiders, who said they believe that a deal involving Van Kampen is imminent.
Morgan Stanley spokeswoman Erica Platt declined to comment. Invesco spokesman Bill Hensel also declined to comment.
Van Kampen currently has a combined $86 billion in assets in open- and closed-end mutual funds.
It makes sense that Morgan Stanley would want to unload Van Kampen, and Invesco is a logical suitor, said Burton Greenwald, an industry consultant.
Van Kampen accounts for “a relatively small portion of revenue” at Morgan Stanley, he said.
“When capital is important, why not sell it?” Mr. Greenwald said.
As for Invesco’s buying the fund unit, it makes sense because it gives Invesco another brand it can sell though the intermediary channel, he said.
Invesco currently offers mutual funds via its Aim Funds brand and exchange-traded funds via Invesco PowerShares Asset Management LLC.
—Mark Bruno contributed to this story