Morgan Stanley Reiterates Overweight on SPX on Service Solution Sale

Morgan Stanley maintains its Overweight rating on SPX SPW as it believes its Service Solutions business sale to Robert Bosch is a definite positive. Morgan Stanley says, "SPW announced this morning a definitive agreement to sell its Service Solutions business to Robert Bosch for $1.15bn. The transaction is expected to result in an after-tax gain of $450m and SPW intends to allocate $350m of the after-tax proceeds to debt reduction and at least $350m to share repurchases." SPW closed at $66.42 a share yesterday.