ANALYSIS: Morgan Stanley, E*Trade Merger Excludes Coronavirus

While the stock market is turbulent, it appears that some of the big players are not worried. Morgan Stanley’s acquisition of E*Trade Financial Corp. specifically carves out the COVID-19 virus from the scope of the definition of “material adverse effect” (MAE).

This exclusion indicates that the parties have factored risks associated with the global coronavirus crisis into the deal—including the price.

‘COVID-19' Has Entered the M&A Market

This $14.5 billion mega deal is the largest acquisition by a Wall Street firm since the financial crisis, and appears to be the first publicly filed merger agreement to specifically carve out ...