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(CEP News) - Morgan Stanley closed a $9 billion capital-raising deal with Mitsubishi UFJ on Monday, ending doubts the Japanese bank would pull out of the agreement.
Shares of Morgan Stanley fell 59.5% last week, in part due to persistent rumours Mitsubishi was going to call off the deal because of the growing financial crisis. The deal was revised somewhat because the precipitous share decline. Under the new deal, Mitsubishi purchased $7.8 billion in convertible preferred stock at $25.25 per share and $1.2 billion in non-convertible stock. Both investments carry a 10% yield. Shares of Morgan Stanley are up about 25% in pre-market trading. By Adam Button,
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, edited by Stephen Huebl,
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