Morgan Stanley is reassessing its plan to spin off its Discover credit card unit, according to people familiar with the situation, the Wall Street Journal reported on Friday.
The plan to pursue a Discover spinoff was announced in early April by Chief Executive Philip Purcell at a time when he was seeking to quell a mounting assault on his leadership and performance from a group of former executives of the investment bank.
Purcell, who had long resisted such a move, announced earlier this week that he would retire as soon as a successor is found and no later than next March.
The company could still decide to move forward with a Discover spinoff, people familiar with the situation told the Journal. But executives are now looking at whether a spinoff makes sense these people said.
One concern is that the credit card unit may need a bigger capital infusion from Morgan Stanley to become a stand-alone, publicly traded entity, than previously was thought, making the move less attractive, people familiar with the situation told the newspaper.
