Japan's largest bank, Mitsubishi UFJ Financial Group, is planning
to take a 10% to 20% stake in Morgan Stanley as part of a strategic alliance.
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Under terms of the agreement, Mitsubishi UFJ Financial Group will have the right to appoint at least one director to the board.
MUFG said it would decide on the amount it would pay after carrying out due diligence. Reuters reports that the stake
would cost MUFG "about $6 billion based on its total market value of $30 billion."
The alliance comes as Morgan Stanley received permission from the Federal Reserve late Sunday to convert its status to a
bank holding company, which places the company directly under the regulatory supervision of the U.S. central bank.
Last week there was speculated that Morgan Stanley
needed to find a well capitalized buyer in order to survive. The gossip claimed Morgan Stanley was in talks with J.P. Morgan Chase & Co., Wachovia Corp., HSBC Holdings plc and Wells Fargo & Co. -
Maria Woehr
