Investors are relieved that Morgan Stanley's investment from Mitsubishi Financial did not turn sour in the end, even if it means the Japanese bank managed to extract a slightly sweeter deal. Morgan Stanley shares surged 87% after it received a $9B investment from Mitsubishi UFJ Financial Group in exchange for a 21% stake in the firm. The deal, which came a day earlier than expected, was modified a little to provide more downside protection to Mitsubishi by switching to an investment of preferred shares only, instead of a mix of common and dividend-yielding shares.
I'm not sure this is a "sweet" deal for Mitsubishi. Sure it's better than originally negotiated, but at Friday's share price Mitsubishi could have bought more than half of Morgan Stanley.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.