MSCI Inc. agreed to sell its Institutional Shareholder Services
Inc. unit to private-equity firm Vestar Capital Partners for $364
million, the third time the investor adviser has changed hands in
seven years.
The sale comes amid a debate regarding the proxy firm's sway
over governance in corporate America.
ISS is the largest provider of advice to public-company
shareholders on how to vote on matters such as merger deals,
executive pay and director elections. It also counsels companies
themselves on their governance. Many big institutional investors,
including pension and mutual funds, rely on ISS to help formulate
their votes.
MSCI, mainly known for its financial indexes, acquired ISS in
2010 as part of its $1.8 billion purchase of RiskMetrics Group,
which had paid $553 million for ISS in 2007. MSCI said in October
that it was exploring "strategic alternatives" for the
business.
Write to Tess Stynes at tess.stynes@wsj.com
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