NEW YORK (AP) -- Morgan Stanley says it signed a letter of intent to sell up to 20 percent of its company to Japan's largest bank, Mitsubishi UFJ Financial Group.
Financial terms of the deal were not disclosed. If the deal is completed, the price would be based on Morgan Stanley's book value after Mitsubishi completes due diligence.
Mitsubishi will be able to add one member to Morgan Stanley's board of directors.
Late Sunday, Morgan Stanley said it received approval from the Federal Reserve to change to a bank holding company.
Morgan Stanley Chief Executive John Mack says the deal would help expand the company's footprint and help in its transition from one of Wall Street's largest investment banks to a commercial bank.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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