Morgan Stanley cuts Discover loose

Morgan Stanley’s board of directors has approved the spin-off of Discover Financial Services. The New York-based investment bank said that the distribution of all 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 will distribute one share of Discover common stock for every two shares of Morgan Stanley common stock owned on that date. Stockholders will receive cash instead of fractional shares for amounts less than one full Discover share. Following the distribution, Discover will be an independent, publicly traded company with its stock listed on the New York Stock Exchange under the ticker symbol “DFS.” Morgan Stanley announced the spinoff of its credit card unit in December, which it said was "well-positioned to be a strong, stable standalone company” (InvestmentNews, December 19) .