Home Inns & Hotels Management is seeking to acquire a 59% stake in Shanghai Motel Management from Morgan Stanley, The Wall Street Journal reports. The U.S. listed firm will pay a total of about $500 million in cash and stock for the acquisition.

Home Inns will fund the acquisition from a $300 million loan it is raising for the stake and the remaining from its own cash. Morgan Stanley also received around a $1 billion non-binding bid when the sale process was started in late 2010, adds Bloomberg.

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