Market Holidays Challenging Morgan Stanley Financing (MS, MTU)

Print Email

This highly anticipated deal to fund Morgan Stanley (NYSE: MS) with $9 billion from Japan’s largest bank, Mitsubishi UFJ Financial Group, Inc. (NYSE: MTU), cannot come fast enough.  Both sides have come public to say the deal is still on, yet Morgan Stanley shares have plunged this week along with the rest of the market.  Its stock trades at roughly half of what it traded just on Monday.  This is a pretty sad affair right now, but holidays closing key markets on Monday are actually blocking this deal from funding until Tuesday, October 14, 2008.

While stocks are trading a full day today and Monday. The US bondmarket closes at 2:00 PM EST today ahead of its closure for Monday’s Columbus Day holiday. 

To make matters worse, it feels like a midnightinfomercial and the cheesy salesman saying, "But wait Jimmy, there’s more." The Japanese financial markets are closed on Monday inobservance of Health and Sports Day.  This means that despite all theterms being set and despite both sides wanting to close this deal, it can not happen until Tuesday.

No one ever said life would be easy.

Jon C. Ogg
October 10, 2008