Citigroup disclosed on Thursday that its valuation of the Morgan Stanley Smith Barney brokerage is substantially above Morgan Stanley's appraisal, the first public jostling between the partners on price.

Morgan Stanley owns 51% of the joint venture but has submitted a bid to buy another 14%. Both companies delivered valuations to one another on Monday, and Citi disclosed on Thursday in a filing with the Securities and Exchange Commission that the two appraisals are 60% apart.