Mitsubishi UFJ Financial Group, Japan's largest bank, said today it planned to take a stake of up to one-fifth in US investment bank Morgan Stanley as part of a strategic alliance.
Mitsubishi UFJ Financial Group (MUFG) said in a statement it would buy 10-20 per cent of the common stock of Morgan Stanley. It said it would decide on the amount it would pay after carrying out due diligence.
Buying 20 per cent of Morgan Stanley would cost MUFG about $6 billion based on its total market value of $30 billion.
Morgan Stanley has been under pressure to raise capital amid a sharp fall in its share price.
Reuters