Morgan Stanley Likely Shopping for a Merger

No. 2 investment bank looks to avoid Lehman's mistakes
By Jim O'Neill,  Newser Staff
Posted Sep 17, 2008 7:25 AM CDT
Morgan Stanley Likely Shopping for a Merger
In this June 17, 2008 file photo, Morgan Stanley headquarters is shown in New York.    (AP Photo/Mark Lennihan, file)

Morgan Stanley is rumored to be considering whether to merge with a deposit-taking bank, reports CNBC, in the wake of Lehman's collapse after repeatedly shunning buyout offers. And while the company hasn’t yet found a partner, insiders say that its sliding stock price makes survival unlikely without a well-capitalized bank as a partner.

Morgan Stanley's share price has plummeted 46% this year and was down 10.8% yesterday to $28.70. "(CEO John) Mack isn't going to wait," said one source. "If he sees the writing on the wall, he's going to do something."
(More Morgan Stanley stories.)

Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X