Each Eaton Vance shareholder will have the
option to choose all cash or all stock, subject to
a proration and adjustment mechanism. Eaton
Vance shareholders will also receive a one-time
special cash dividend of $4.25 per share to be
paid before the transaction’s closing by Eaton
Vance to its shareholders from existing balance
sheet resources.
The deal is expected to close in the second
quarter of next year.
Shares of Eaton Vance Corp. spiked 45% before
the opening bell. Morgan Stanley’s stock
declined nearly 3%.