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Morgan Stanley buyer wants a better deal
Denmark News.Net
Monday 13th October, 2008
Morgan Stanley and Mitsubishi UFJ Financial Group, a large Japanese bank, are at odds over a multi-billion capital investment which Mitsubishi had agreed to put into the embattled Wall Street bank.
The New York Times has reported that Morgan Stanley is renegotiating the terms of the proposed $9 billion stock purchase.
According to the Times, Mitsubishi has asked for better terms to make up for the drop in Morgan Stanley’s share value.
Under the new terms, Mitsubishi has offered to buy 21% of Morgan Stanley in the form of preferred shares that pay a 10% annual dividend.
Last week, Morgan denied rumors that the deal was falling apart because its stock price had plummeted.
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Sammy
10-13-08, 01:51 PM |
Morgan Stanley buyer wants a better deal
A 10% annual divident is a good investment, but I do guess that the Japanese want to shoot for a better deal, and to get a better deal is to let Morgan Stanley fall further so that they can ask for a better deal.
Who knows; If speculators are behind this sale, and these speculators want to make sure that Morgan Stanley will sink much further so that the Japanese will ask for a better deal and Morgan Stanley to save its hide must give in.
I do hope that the US government moves in and buys these shares, and leave the Japanese out of this blackmailing deals.
Sammy
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