| HBS Case Collection
(Revised from original 1998 version)
Morgan Stanley and S.G. Warburg: Investment Bank of the Future (A)
Describes secretive negotiations that took place between the top executives of Morgan Stanley and S.G. Warburg in the fall of 1994, when the two firms were contemplating a merger that would create one of the world's most powerful investment banks. By December, in order to speed post-merger reorganization, the handful of executives who have been conducting the talks are considering disclosing the proposed merger to the top 100 managers at each firm. The goal is to complete the merger and announce it publicly by December 19. Taking the position of a key executive and point person in the negotiations at either Morgan Stanley or S.G. Warburg, students must decide whether to draw 100 managers at each firm into the deal before it is finalized, as well as how to implement the merger once this decision has been made.