Morgan Stanley soars on MUFG deal

Morgan Stanley shares soared after the bank secured a $9bn investment from Mitsubishi UFJ Financial Group that gives the Japanese group a 21% stake on better terms than previously announced, reports the FT. The deal does not commit MUFG to support Morgan Stanley, but MUFG’s $1,100bn deposit base appeared to help restore investor confidence in Morgan Stanley’s ability to secure critical short-term funding. The US bank’s share price, which plunged from nearly $24 to a low of $6.71 last week, rose as much as 97% in New York before closing 85% higher. Last month, MUFG agreed to pay $6bn for preferred stock, which gave it the option to convert the security into common shares at a price of $31.25, as well as $3bn... [read full story]