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

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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.)

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