Business | Banking
Morgan Stanley-MUFG deal closes, Morgan shares soar
Mitsubishi UFJ Financial Group Inc (MUFG) completed its purchase of a stake in Morgan Stanley on Monday with US government support, helping close a deal that investors had feared would fall apart.
- Agencies
- Published: 19:27 October 13, 2008
New York: Mitsubishi UFJ Financial Group Inc (MUFG) completed its purchase of a stake in Morgan Stanley on Monday with US government support, helping close a deal that investors had feared would fall apart.
Morgan Stanley shares soared as much as 65 percent after Japan's largest bank bought the stake -- a day earlier than expected - after a week in which the New York bank's stock plunging by more than half on fears Morgan Stanley might not survive.
"It's different terms, but it's done, and I think people should breathe a sigh of relief that it's done," said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.
Amending the terms of a September 29 agreement, Mitsubishi bought preferred stock convertible into a 21 per cent stake in Morgan for $9 billion in cash, with the entire investment now consisting only of preferred stock, the Japanese bank said.
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