(Reuters) - Morgan Stanley (N:MS) will receive a 5 million breakup fee if E*Trade Financial Corp (O:ETFC) walks away from its billion deal for the discount brokerage, the U.S. bank said on Friday.
On Thursday, Morgan Stanley entered into a deal to buy E*Trade, the biggest acquisition by a major Wall Street bank since the 2007-2009 financial crisis.
E*Trade has been the subject of M&A speculation for some time, especially after Charles Schwab Corp (N:SCHW) said it would buy TD Ameritrade Holding Corp (O:AMTD) last year.
If Morgan Stanley terminates the deal due to antitrust issues, E*Trade would receive 5 million, Morgan Stanley said in a regulatory filing https://www.sec.gov/ix?doc=/Archives/edgar/data/895421/000095010320003111/dp121716_8k.htm.
The bank expects to complete the deal by the fourth quarter, and executives expressed confidence that it would meet regulatory approvals.