Morgan Stanley
From Taighde
Morgan Stanley is a financial institute based in the United States.
The China Investment Corporation has purchased $6.8 billion worth of shares. The CIC currently has a 7.8% stake with 150,782,379 shares.[1] The CIC was expected to convert $5.6 billion in convertible shares by August 16, 2010. The CIC will gain an additional 116.1 million shares. The CIC is expected to sell as many shares as it can to keep their holdings below 10% to avoid regulatory oversight; however, the CIC have been cleared to hold more than 10% of the bank by the Federal Reserve.[2] The CIC made their first investment in Morgan Stanley on December 19, 2007.
CIC's investment
On December 19, 2007, Morgan Stanley announced that the China Investment Corporation (CIC) will be buying $5 billion in equity units that will convert into common stock in 2010 in brokerage . CIC will receive an 9% yield on the units which translate into roughly $450 million annualny. Their will be price constraints on the stock. The details have not been settled yet but most likely will require CIC to forgo the first 20 percent rise in the stock price between now and 2010.
CIC will end up of roughly 9.9% of total shares. Morgan Stanley announced this deal on the same day they released 4rd quarter total losses of $3.58 billion. Stanley lost $9.4 billion due to the global credit crunch which came to a head in late 3rd quarter.
This is the 4th overseas recognized deal for CIC and it largest. They will be the largest investor in Morgan Stanley. There nothing preventing CIC from being an activist shareholder but at this point, it is most likely they will not.
Lazard Asset Management LLC worked with CIC on this deal.
In early December 2007, John Mack, Chairman of Morgan Stanley, traveled to China to speak with company executives of China Fortune Securities. It is very likely that the beginning of the deal was started here.
The CIC purchased an additional $2.2 billion worth of shares on June 2, 2009. Owning to the economic crisis, the CIC's stake in Morgan Stanly was diluted to 7.68% from 9.95%. The new shares brought back CIC's stake to 9.85%
Morgan Stanley Real Estate Fund VII Global
The CIC invested $800 million into a Morgan Stanley real estate fund
Government Pension Fund of Norway
The Government Pension Fund of Norway held a 0.63% stake in the company as of December 31, 2009. The stake is valued at $250,874,734.
| Date | Ownership | Voting | Value |
|---|---|---|---|
| December 31, 2009 | 0.63% | 0.63% | $250,874,734 |
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