Alexa

Report: Morgan Stanley sets reference price for stake sale to China Investment Corp.

Report: Morgan Stanley sets reference price for stake sale to China Investment Corp.

Morgan Stanley and China's sovereign wealth fund on Monday confirmed that the U.S. investment bank has set a reference price for the sale of a stake to the fund, according to media reports.
China Investment Corp. agreed last week to invest about US$5 billion (euro3.5 billion) in Morgan Stanley securities, convertible into a stake of up to 9.9 percent in 2010 at a price of no more than 1.2 times the reference price.
Spokesmen for both Morgan Stanley and China Investment Corp. on Monday confirmed a report by China's official Xinhua News Agency that the reference price would be between US$48.07 and US$57.684, Dow Jones Newswires reported.
Both officials spoke on customary condition of anonymity.
Morgan Stanley's shares closed at US$54.37 (euro37.81) Friday, up 5.84 percent from their previous close.
The Chinese investment will help soften the blow from mortgage-related debt that led the bank to report a US$9.4 billion (euro6.5 billion) writedown in the quarter ended Nov. 30.
Morgan Stanley, the second-largest U.S. investment bank by market value, reported a net loss for the quarter of US$3.59 billion (euro2.5 billion), or US$3.61 (euro2.51) a share, compared with net income of US$1.54 billion, or US$1.44 a share, in the year-earlier period.
The quarterly loss was Morgan Stanley's first in its 73-year history.


Updated : 2020-12-04 07:56 GMT+08:00