May 23 Morgan Stanley is close to a deal
to sell its stake in its TransMontaigne oil
transportation-and-storage business, the Wall Street Journal
reported on Friday, citing sources familiar with the matter.
The company has narrowed the list of bidders for the
business that could be worth several hundred million dollars,
the newspaper said. (link.reuters.com/sew59v)
NGL Energy Partners LP and Buckeye Partners LP
are among the companies that have held discussions with
Morgan Stanley regarding the deal, the Journal said.
Officials at TransMontaigne expect to have a deal in the
next few months, the newspaper reported.
Morgan Stanley had launched a formal effort in December to
sell its controlling stake in TransMontaigne, while it sold the
majority of its global physical oil trading operations to
Russian state-run oil major Rosneft.
The bank has been trying to sell or spin off its physical
commodity business for over a year as it faces increased
regulatory pressure and higher capital requirements.
The TransMontaigne assets that Morgan Stanley is trying to
sell include 48 fuel terminals with nearly 24 million barrels of
storage capacity on the U.S. Gulf Coast, in Florida, the Midwest
and across the Southeast, some of them located along the
strategically important Colonial Pipeline that ships gasoline
and diesel from the Gulf to the East Coast.
Officials at Morgan Stanley, TransMontaigne, NGL Energy and
Buckeye Partners were not available for comment outside normal
(Reporting by Rohit T. K. and Kanika Sikka in Bangalore;
Editing by Mohammad Zargham)