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Japanese banking giant Mitsubishi UFJ Financial Group has agreed to acquire upto 20% stake in Morgan Stanley. The firm said in a release that it is "ready to pick up 10-20% stake of the total

outstanding common stock of Morgan Stanley on a fully diluted basis, as soon as practicable."

Mitsubishi also said that "it would have the right to appoint at least one director to the board of Morgan Stanley." The amount to be invested by Mitsubishi could go upto $8.4 billion, according to.

The decision comes as Morgan Stanley has abandoned its investment bank model and become traditional bank holding company. Morgan Stanley was also talking to Wachovia Bank of US and CIC of China. Japanese brokerage Nomura has also bought out Lehman Asia units. It has offices

in New York, Mumbai, London, Tokyo and Hong Kong with over 50,000 employees.

The stock price of Morgan Stanley jumped up by more than 10% to $30 in trading before the opening bell on Monday. Mitsubishi also controls California-based UnionBanCal Corp.

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