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MUFG Converts $7.8B Morgan Stanley Shares
Mitsubishi UFJ Financial Group will convert $7.8 billion of preference shares in Morgan Stanley into common shares.
Mitsubishi UFJ Financial Group (MUFG) will convert $7.8 billion of preference shares in Morgan Stanley into common shares, Financial Times reports. MUFG will get 385 million shares of Morgan Stanley common stock in exchange of the preference shares and an additional 75 million common shares from Morgan Stanley.
MUFG has increased its stake in the bank to 22.4% from 19%. The stock conversion will increase MUFG’s profits by about $2.43 billion in 2011. Morgan Stanley can repurchase the remaining $500 million of non- convertible preferred stock held by MUFG for about $572 million starting Oct. 15, 2011, adds Bloomberg.Click here for the story from Financial Times.
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