Morgan Stanley gets $9 bil from Mitsubishi
Posted October 12, 2008 11:00 pm
NEW YORK -- Morgan Stanley says Mitsubishi UFJ Financial Group has completed its $9 billion investment in the firm, giving it a much-needed capital infusion.
The closing comes a day earlier than expected.
As part of the revised deal, Mitsubishi will receive $7.8 billion in convertible preferred stock that carries a 10 percent dividend and is convertible at a price of $25.25 per share. The Japanese bank will also receive $1.2 billion in non-convertible preferred stock, which also carries a 10 percent dividend.
The deal was revised after Morgan Stanley lost nearly 60 percent of its value last week amid speculation the deal would not close.
Shares of Morgan Stanley rose 25.2 percent to $12.12 in premarket trading.
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