MUFG: To Acquire $600 Million In Morgan Stanley Common Stock
11 May 2009 - 10:38AM
Dow Jones News
Mitsubishi UFJ Financial Group Inc. (8306.TO) said Monday that
it will acquire $600 million Morgan Stanley (MS) common shares,
bringing its stake in the U.S. investment bank to over 20%.
The Japanese bank said it will pay $24 per share and buy 25
million shares on May 13.
However, because Morgan Stanley will redeem around Y60 billion
of nonconvertible preferred shares under the transaction, MUFG will
not pay additional cash for the purchase.
The move comes after Morgan Stanley said last week it would sell
$2 billion in stock after the Federal Reserve told the bank it
needed to add $1.8 billion in common equity.
-Tokyo Bureau; Dow Jones Newswires; 813-6895-7550