After Bear Stearns, Merrill Lynch, Lehman Brothers and AIG, the international media is buzzing with rumours that Morgan Stanley could be the next victim. It’s not surprising that the stock is facing a lot of turbulence on Wall Street and has taken a sound beating over the last few days.
According to a CNBC report, Morgan Stanley is looking at a merger partner.
Business Week too has reported on the growing sentiment that Morgan Stanley may need to find a partner in a commercial bank that would provide it with stable funding from its deposit base.
Bloomberg has reported that Morgan Stanley is weighing a merger with Wachovia Corp. and several other banks. The Wall Street Journal has a similar report.
Other more recent reports state that Morgan Stanley will possibly be acquired by China's CITIC.
A look at the data released by the Bombay Stock Exchange shows that Morgan Stanley was on a selling spree yesterday. It was involved in bulk deals (all sell) in 7 scripts via Morgan Stanley Investments Mauritius Ltd.
Educomp Solutions, Gujarat NRE Coke, Jindal Saw, Opto Circuit, Pantaloon Retail, Subhash Projects & Marketing, and United Spirits were the scrips it offloaded.
Meanwhile, the scrip has got hammered on Wall Street and is said to be at its lowest since 1998.