US investment bank Morgan Stanley continues to pursue both large and small acquisitions across a range of businesses, including mortgages and commodities, Chairman and Chief Executive John Mack told investors on May 15.
After more than 10 months at the helm at Morgan Stanley, Mack said the bank has made progress reviving laggard businesses such as brokerage and asset management, and expanded on its global investment banking activities.
Yet the firm has a long way to go toward its goal of doubling profit in five years, prompting the firm to be more aggressive in pursuing deals that can boost growth, he said.
"We're looking across a broad range of businesses," Mack said at an investor conference hosted by UBS.
Earlier Monday, Morgan Stanley sealed its second U.K. credit card deal in five months with its partnership with friendly society Liverpool Victoria for undisclosed terms.
Morgan, parent of the world's largest credit card issuers in Discover, in December bought the Goldfish credit card business from Lloyds TSB for about $1.76 billion.
The investment bank's Morgan Stanley Capital Group unit has also been locked in a battle to acquire TransMontaigne, a Denver-based oil-products marketer and distributor.
TransMontaigne accepted a higher offer from rival suitor SemGroup, four days after accepting an improved bid from Morgan Stanley, which runs one of the biggest energy-trading desks.
Mack insisted the company will be restrained even as it takes a look at deals large and small. Earlier this year Morgan Stanley passed on an opportunity to acquire money management giant BlackRock Inc, he said, because the price would have been dilutive to the bank's shareholders.
"We're going to continue to be disciplined and avoid deals that don't deliver sufficient returns on dollars invested," Mack said.
Even so, Mack indicated the firm continues to seek ways to revive its money management arm, especially in its ability to offer clients access to alternative investments. In the wake of the collapsed BlackRock talks, Morgan Stanley has hired some individuals and teams, and shifted executives internally, though it has not ended its search for deals.
Mack also said the company, which is bulking up on its principal investments, has spent $1.3 billion out of $2.5 billion committed to that activity.
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