Don't miss

Replay


LATEST SHOWS

FACE-OFF

After Brexit, is a Frexit possible?

Read more

BUSINESS DAILY

Vodafone warns it could move HQ out of UK

Read more

IN THE PAPERS

French people against a 'Frexit' referendum

Read more

MEDIAWATCH

Turkish Airport Blasts

Read more

EYE ON AFRICA

France slammed for support of ex-Chad dictator Hissene Habre

Read more

THE DEBATE

The big breakup: The EU after Brexit

Read more

FOCUS

France struggling to recruit prison imams

Read more

ENCORE!

Brazil’s contemporary art star Vik Muniz comes to Paris

Read more

FASHION

Men's fashion for summer 2017, part 1

Read more

Japan's Mitsubishi UFJ to buy up to 20% of Morgan Stanley

Latest update : 2008-09-22

Following Morgan Stanley's decision to change its status into a holding, Japan's largest bank Mitsubishi UFJ announced it would buy between 10 and 20 percent of the ailing US investment bank in a deal worth up to 8.5 billion dollars.

Read the commentary by our Business Editor Douglas Herbert: "Banking for dummies"

 

Japanese megabank Mitsubishi UFJ Financial Group Inc. will buy 20 percent of ailing US banking giant Morgan Stanley in a deal worth up to 8.5 billion dollars, the two companies said.
  
Japan's largest bank said the deal would likely total between 400 to 900 billion yen (3.75 billion to 8.5 billion dollars).
  
MUFG will also send at least one executive to sit on Morgan Stanley's executive board, subject to approval by regulatory authorities.
  
Morgan Stanley has been looking for help through a tie-up with another bank as part of a major realignment on Wall Street, which has been hit hard by the subprime loan crisis.
  
The announcement came hours after Morgan Stanley and Goldman Sachs said they were both agreeing to become holding companies, submitting themselves to more regulation to be part of a massive US government bailout.
  
Morgan Stanley said in a statement that MUFG's stake in the company would eventually rise to 20 percent.
  
"This strategic alliance with Mitsubishi UFJ can put Morgan Stanley in an even stronger position as we look to realise the opportunities we see in the rapidly changing financial marketplace," John J. Mack, Morgan Stanley's chairman and chief executive officer, said in the statement.
  
"We would look forward to working closely with them to strengthen both of our businesses," he said.
  
Earlier reports said Morgan Stanley was in talks with Wachovia Corporation and Chinese sovereign wealth fund China Investment Corporation (CIC).
  
MUFG was born through a merger in 2005 to become the world's largest bank in asset terms.
  
Japanese banks, which recently recovered from their own crisis of bad loans, have been less hard hit by the subprime loan crisis than their peers in North American and Europe.
  
Top Japanese brokerage group Nomura Holdings confirmed late Monday that it had won a deal to buy all Asian operations of collapsed US investment firm Lehman Brothers.
  
 

Date created : 2008-09-22

COMMENT(S)