Vanguard stands to make hundreds of millions of dollars from Morgan Stanley’s planned $13 billion takeover of E-Trade Financial, writes Ryan Sharrow for the Philadelphia Business Journal.

The Malvern-based investment giant is E-Trade’s largest institutional shareholder with 25.3 million shares in the online trading brokerage.

Upon news of the takeover, E-Trade’s shares jumped by 24 percent or $10.67 per share. This increased Vanguard’s holding in the company by more than $270.4 million overnight. However, it’s unclear how much Vanguard initially paid for the company’s shares.

E-Trade saw its stock fall by as much as 26 percent in 2019 before rebounding near the end of the year. With this latest boost, the stock is now up 15.1 percent for the last 12 months.

The company’s shareholders will receive 1.0432 of Morgan Stanley shares for every E-Trade share they own. This is a per-share consideration of $58.74 based on the buyer’s closing price as of Wednesday last week.

The deal is expected to close in the fourth quarter of 2020.

E-Trade has more than 5.2 million clients and $360 billion of retail assets.

Read more about Vanguard in the Philadelphia Business Journal here.

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