The Deal
Sunday, November 8, 
5:43 am

Mitsubishi UFJ wrings out better terms from Morgan Stanley

  Share     E-Mail    Discussion    Print Story
John_Mack_looking_sad.jpgShares of Morgan Stanley took a beating last week as rumors swirled that Mitsubishi UFJ Financial Group Inc. may pull out of its deal to put $9 billion into the investment bank. Mitsubishi UFJ went through with the deal, buying a 21% stake in Morgan Stanley, but not before wringing out better terms for its investment.

Continue reading below

Also on Dealscape

Bloomberg is reporting that Mitsubishi UFJ will now get $900 million in annual dividend payments from Morgan Stanley, $300 million more than the two parties initially agreed upon. Additionally, the modified deal gives Mitsubishi UFJ preferred shares that pay 10% in interest, as opposed to the combination of $6 billion in preferred shares and $3 billion of common stock when the deal was first announced.

The deal, along with the federal government's bailout plan, quickly shored up confidence in Morgan Stanley. The cost on credit default swaps on Morgan Stanley's debt tumbled over 660 basis points after the capital infusion, while the stock is up over 100% since the announcement. - George White

See Bloomberg story
See Dealscape post on Mitsubishi UFJ investment






Post a comment





The Deal Pipeline

Deal Video


Inside The Deal: Linklaters' Schmidt says how regulators handled Pfizer Inc.'s acquisition of Wyeth is an outlier of how others merger reviews will be conducted.


More video...

Crisis On Wall Street
Technology
Deals of The Decade

Community

Industry Insight

Dealing with frozen bank lending

If your bank is not willing to lend, what can you do as your company continues to seek growth?


Judgment Call

The coming age of the renminbi

The Chinese currency will play an increasingly important role in international commerce and finance.


Industry Insight

Banking on PE investments

Howls of protest greeted the FDIC policy statement, but the financial services industry should get over it.


footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg


©Copyright 2009, The Deal, LLC. All rights reserved. Please send all technical questions, comments or concerns to the Webmaster.