Morgan Stanley/Blackrock:Between Blackrock and a hard place

Is John Mack a friend to Morgan Stanley shareholders or an empire-builder? The question has vexed the investment bank’s investors since Mack took over in June. The answer may come soon in the shape of a deal with Blackrock, the fixed-income asset manager. Blackrock’s excellent earnings and asset growth make it a tempting target. So, too, are the services of Larry Fink, Blackrock’s respected chief. Trouble is Mack would destroy oodles of value with a takeover. Factor in a premium and compensatio...