Bloomberg Law
Feb. 28, 2020, 9:25 PM

ANALYSIS: Morgan Stanley, E*Trade Merger Excludes Coronavirus

Grace Maral Burnett
Grace Maral Burnett
Legal Analyst
Denis Demblowski
Denis Demblowski
Legal Analyst
Diane Holt
Diane Holt
Legal Analyst

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 ...

Learn more about Bloomberg Law or Log In to keep reading:

Learn About Bloomberg Law

AI-powered legal analytics, workflow tools and premium legal & business news.

Already a subscriber?

Log in to keep reading or access research tools.