Mitsubishi UFJ may buy 10-20% stake in Morgan Stanley
Buying 20% of Morgan Stanley would cost MUFG about $6 bn based on its total market value of $30 bn. Stocks 52 Week: High, Low | Gainers & Losers
By Agencies |
TOKYO: Mitsubishi UFJ Financial Group, Japan's largest bank, said on Monday it planned to take a stake of up to one-fifth in US investment bank Morgan Stanley as part of a strategic alliance.
Mitsubishi UFJ Financial Group (MUFG) said in a statement on Monday it would buy 10-20 percent of the common stock of Morgan Stanley. It said it would decide on the amount it would pay after carrying out due diligence.
Buying 20 percent of Morgan Stanley would cost MUFG about $6 billion based on its total market value of $30 billion.
Morgan Stanley has been under pressure to raise capital amid a sharp fall in its share price.
The Federal Reserve on Sunday agreed to allow investment banks Goldman Sachs and Morgan Stanley to become bank holding companies, giving them easier access to credit and help them survive the financial crisis.
Morgan Stanley, which has some $36 billion in bank deposits, said it sought the new status from the Federal Reserve "to provide the firm maximum flexibility and stability to pursue new business opportunities as the financial marketplace undergoes rapid and profound changes.
"This new bank holding structure will ensure that Morgan Stanley is in the strongest possible position - with the stability and flexibility to seize opportunities in the rapidly changing financial marketplace," said Morgan Stanley chairman and chief executive John Mack.
"It also offers the marketplace certainty about the strength of our financial position and our access to funding."
Mitsubishi UFJ Financial Group (MUFG) said in a statement on Monday it would buy 10-20 percent of the common stock of Morgan Stanley. It said it would decide on the amount it would pay after carrying out due diligence.
Buying 20 percent of Morgan Stanley would cost MUFG about $6 billion based on its total market value of $30 billion.
Morgan Stanley has been under pressure to raise capital amid a sharp fall in its share price.
The Federal Reserve on Sunday agreed to allow investment banks Goldman Sachs and Morgan Stanley to become bank holding companies, giving them easier access to credit and help them survive the financial crisis.
Morgan Stanley, which has some $36 billion in bank deposits, said it sought the new status from the Federal Reserve "to provide the firm maximum flexibility and stability to pursue new business opportunities as the financial marketplace undergoes rapid and profound changes.
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"This new bank holding structure will ensure that Morgan Stanley is in the strongest possible position - with the stability and flexibility to seize opportunities in the rapidly changing financial marketplace," said Morgan Stanley chairman and chief executive John Mack.
"It also offers the marketplace certainty about the strength of our financial position and our access to funding."
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