Monte51Coleman
September-17th-2008, 07:09 PM
http://www.cnbc.com/id/26763431
Morgan Stanley is in talks to possibly be acquired by Chinese bank Citic, sources in the U.S. and China have told CNBC.
No deal is certain at this time, however, and sources said that none was likely to be finalized Wednesday.
Word of the talks follows a report earlier in the New York Times that Morgan Stanley, one of the two last independent, U.S.-based investment banks, is considering a merger with Wachovia or another bank.
The Federal Reserve has been active in encouraging the Chinese to invest in U.S. financial institutions and has made it clear that it would look favorably upon a Chinese acquisition of a financial institution, sources said.
Though the Chinese do not have a great deal of experience in running large investment banks, Citic does own the largest brokerage in China.
Morgan Stanley's senior management has been in talks with a number of potential buyers, and a deal becomes more likely as the investment bank's stock—which plunged than 24 percent Wednesday—declines further. HSBC has also been cited to CNBC as a possible suitor for Morgan Stanley.
Morgan Stanley's chief executive, John J. Mack, received a telephone call on Wednesday from Wachovia expressing interest in the Wall Street bank, the Times said. Morgan Stanley is considering other options as well. Other banks have also expressed interest in Morgan Stanley.
The talks are preliminary and no deal may emerge.
Meanwhile, Washington Mutual has put itself up for auction, people briefed on the matter also told the Times.
Reports of both possible deals came after the market closed.
Earlier, anxious investors continued to hack away at Morgan Stanley and Goldman Sachs Group, sending the two largest investment banks' shares lower.
Morgan Stanley's shares sank 40 percent below the depths reached during the Asia debt crisis and collapse of Long Term Capital Management a decade ago. Goldman stock plummeted 22 percent to a three-year low. This year, Goldman shares have fallen 45 percent and Morgan's are down 57 percent.
Morgan Stanley is in talks to possibly be acquired by Chinese bank Citic, sources in the U.S. and China have told CNBC.
No deal is certain at this time, however, and sources said that none was likely to be finalized Wednesday.
Word of the talks follows a report earlier in the New York Times that Morgan Stanley, one of the two last independent, U.S.-based investment banks, is considering a merger with Wachovia or another bank.
The Federal Reserve has been active in encouraging the Chinese to invest in U.S. financial institutions and has made it clear that it would look favorably upon a Chinese acquisition of a financial institution, sources said.
Though the Chinese do not have a great deal of experience in running large investment banks, Citic does own the largest brokerage in China.
Morgan Stanley's senior management has been in talks with a number of potential buyers, and a deal becomes more likely as the investment bank's stock—which plunged than 24 percent Wednesday—declines further. HSBC has also been cited to CNBC as a possible suitor for Morgan Stanley.
Morgan Stanley's chief executive, John J. Mack, received a telephone call on Wednesday from Wachovia expressing interest in the Wall Street bank, the Times said. Morgan Stanley is considering other options as well. Other banks have also expressed interest in Morgan Stanley.
The talks are preliminary and no deal may emerge.
Meanwhile, Washington Mutual has put itself up for auction, people briefed on the matter also told the Times.
Reports of both possible deals came after the market closed.
Earlier, anxious investors continued to hack away at Morgan Stanley and Goldman Sachs Group, sending the two largest investment banks' shares lower.
Morgan Stanley's shares sank 40 percent below the depths reached during the Asia debt crisis and collapse of Long Term Capital Management a decade ago. Goldman stock plummeted 22 percent to a three-year low. This year, Goldman shares have fallen 45 percent and Morgan's are down 57 percent.