Legal News

Davis Polk, Cravath, Wachtell on the Citi-Morgan Stanley Deal

By Dan Slater

Our Deal Journal colleagues write today that, “Breaking up is hard to do. Particularly when Hank Paulson is breathing down your neck.” They’re referring to this morning’s WSJ front-pager detailing Citigroup’s plans to shed businesses and shrink itself by one-third, essentially dismantling the financial colossus built by legendary deal maker Sanford Weill.

“It would be an important acknowledgment that Citigroup’s push to shed unprofitable businesses has entered a more serious phase,” writes the Journal, “as investors and regulators alike press it to downsize in the face of its fifth straight quarter of losses.” The related story is Morgan Stanley’s agreement to pay $2.7 billion for a majority stake in a joint venture with Citi’s Smith Barney unit that would create the largest army of stockbrokers in the world.

So who are the lawyers? Davis Polk is advising Citi in the Morgan Stanley deal. The team is led by M&A partners George Bason, John Bick, Carole Schiffman; financial institutions head Randall Guynn; and tax partners Avishai Shachar and Neil Barr. Repping Citi’s board is Cravath’s Robert Joffe.

Lawyers from Wachtell, Lipton, Rosen & Katz are advising Morgan Stanley.

Full post as published by Law Blog - WSJ.com on January 14, 2009 (boomark / email).