Morgan Stanley-MUFG deal closes, Morgan shares soar

By Joseph A. Giannone NEW YORK (Reuters) - Mitsubishi UFJ Financial Group Inc (MUFG) completed its purchase of a stake in Morgan Stanley on Monday with U.S. government support, helping close a deal that investors had feared would fall apart. Morgan Stanley shares soared as much as 65 percent after Japan's largest bank bought the stake -- a day earlier than expected -- after a week in which the New York bank's stock plunging by more than half on fears Morgan Stanley might not survive. "It's different terms, but it's done, and I think people should breathe a sigh of relief that it's done," said Peter Boockvar, equity strategist at Miller Tabak & Co in New York. Amending the terms of a September 29 agreement, Mitsubishi bought preferred stock convertible into a 21 percent stake in Morgan for $9 billion in cash, with the entire... [read full story]