Money

Fed approves CIC's buy of Morgan Stanley shares

(Agencies)
Updated: 2010-09-01 16:24

The Federal Reserve has approved China Investment Corp's (CIC) request to take up to 10 percent voting shares in Morgan Stanley, Reuters said Wednesday.

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CIC, China's $300 billion sovereign wealth fund, stated that it did not plan to seek to control or exercise a controlling influence over Morgan Stanley and the deal will be a passive investment, the Federal Reserve said.

CIC had in December 2007 invested in Morgan Stanley securities through a nonbank subsidiary, and the investment entails it the right to acquire Morgan Stanley common stock by August of this year, according to the Fed order.

Up till now, CIC has invested in Morgan Stanley a total of $6.8 billion.