Mitsubishi UFJ Financial Group Inc. has finally
closed on its $9 billion equity investment in Morgan Stanley, taking a 21% stake in the company. Morgan Stanley's stock was up in premarket trading after the announcement, putting to rest rumors that Mitsubishi was thinking of pulling out of the deal, which, combined with a
possible downgrade by Moody's Investors Service, resulted in the investment bank's shares getting pummeled last Friday.
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According to the
press release,
MUFG has acquired $7.8 billion of perpetual noncumulative convertible
preferred stock with a 10% dividend and a conversion price of
$25.25 per share, and $1.2 billion of perpetual noncumulative
nonconvertible preferred stock with a 10% dividend.
As part of the deal, MUFG will also get a seat on Morgan Stanley's board.
- Maria Woehr
