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Morningstar mulls IPO
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March 12, 1998: 8:42 a.m. ET
Bestower of fund 'star' ratings considers entering the stock market fray
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NEW YORK (CNNfn) - Morningstar Inc., the financial research firm best known for its star ratings of mutual funds, is considering entering the stock market fray by going public itself.
To that end, the Chicago-based firm has been discussing its options with investment bankers about an initial public offering, according to the Wall Street Journal Thursday.
On Wednesday, the company announced it hired Timothy Armour, a well-known mutual fund executive, to be Morningstar's chief operating officer and the company's chief executive offered hints the hiring preceded some action.
"We want to make sure we've got the managerial depth to drive the company forward," said Morningstar CEO Don Phillips.
Morningstar has looked around for equity investments in the past from such firms as Dow Jones & Co., but the once-unprofitable firm is now in the black.
Companies undertaking an IPO are usually looking for capital, and while Morningstar may not need the money now, the firm's CEO said "the need for capital may be more intense in the future" as it looks to expand overseas.
Phillips told the Journal that although Morningstar has spoken with investment bankers about an IPO, it was not yet a firm possibility.
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