mufg-gets-morgan-stanley-to-agree-to-sweeter-terms

MUFG gets Morgan Stanley to agree to sweeter terms

The Japanese bank insists on all preferred stock and a lower conversion price than earlier agreed, but the capital injection goes through, prompting an 85% rally in Morgan Stanley's share price.
JapanÆs largest financial group, Mitsubishi UFJ Financial Group, met the deadline for its $9 billion bailout investment in Morgan Stanley, but significantly revised the terms to reflect the drop in the US investment bank's share price and the changed market conditions.

MUFGÆs entire investment, which will give it a 21% stake in Morgan Stanley, will now be in the form of preferred stock. It will buy approximately $7.8 billion of perpetual, non-cumulative, convertible preferred stock, which is convertible at a price of $25.25 per share, and $1.2 billion of perpetual, non-cumulative, non-convertible preferred stock. Both the convertible and non-convertible preferred stock will carry a 10% annual dividend.

Half of the convertible preferred stock automatically...
¬ Haymarket Media Limited. All rights reserved.

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