Japanese bank Mitsubishi UFJ Financial Group has bought up to a 20 per cent stake in troubled Wall Street firm Morgan Stanley.
Mitsubishi UFJ said it would acquire a stake in Morgan Stanley of between ten and 20 per cent. The price will be decided on completion of due diligence.
MUFG would have the right to appoint at least one director to the board of Morgan Stanley, the bank added.
Morgan Stanley was said last week to be seeking a partner to save itself from the same fate as its rivals Lehman Brothers, Merrill Lynch and Bear Stearns.
Wachovia was understood to be considering a takeover but CNBC has reported that following Morgan Stanley's conversion to a bank holding company, this deal is now unlikely.
Last night, the Federal Reserve said Morgan Stanley and Goldman Sachs had applied to change their status from investment to commercial banks.
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