Invesco Announces $680M Offering

JP Morgan has published a research report on Invesco Ltd. IVZ after the company announced a divestiture that is not expected to affect the already strong Invesco/Morgan Stanley MS relationship. In the report, JP Morgan writes "Invesco announced a $680 million follow-on offering in which Morgan Stanley is offering for sale 30.9 million shares that it received from the sale of Van Kampen in late May. We believe that the divestiture will spark concerns about the distribution relationship Invesco has with Morgan Stanley. We feel these concerns are without merit and see the strong Invesco / Morgan Stanley relationship as being unaffected by the divestiture of Morgan Stanley's interest." JP Morgan maintains its Overweight rating and $30.50 price target. Invesco Ltd. closed yesterday at $23.20.