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Friday April 01, 09:03
Morgan Stanley’s top management continues simmering
(by Brigitta Zulfitzler)

Morgan Stanley’s top management continues simmering

Morgan Stanley’s Philip J. Purcell made new efforts yesterday to recover his control over the split firm.

The company officials were preparing a public letter in support of Mr. Purcell to be signed by the members of the management committees and senior managing directors. The number of the bankers to sign on remains unrevealed.

Trying to placate the rebelling anger after the departures of two effective senior executives - Vikram S. Pandit and John P. Havens - their recently appointed successors as co-presidents, Stephen S. Crawford and Zoe Cruz, arranged a forum with the firm’s investment bankers.

But Mr. Purcell and his new team faces extreme challenge in unifying the investment bank where many bankers still give strong support to the two fired executives.

In addition, the group of eight retired Morgan Stanley executives, or the Group of Eight as they are calling themselves, continues to lobby the Morgan Stanley board to oust Mr. Purcell by sending and releasing public claiming letters.

The company’s stock gained yesterday $1.97 a share, or 3%, to $57.25, as a number of analysts began to explore the possibility that the company may become inclined to a takeover.

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