CIC to invest additional $1.2b in Morgan Stanley

Sovereign wealth fund China Investment Corp (CIC) announced that it will spend US$1.22 billion to increase its stake in Morgan Stanley to 9.88%, the South China Morning Post reported. The troubled US investment bank had announced that it was trying to raise an additional US$2.2 billion to repay the US government for US$10 billion in capital injections over the last year. CIC has agreed to buy 44.7 million shares, equal to 55.73% of the 80.2 million shares that the bank is offering, at a share price of US$27.44. CIC’s initial US$5.6 billion investment in Morgan Stanley was its second significant investment after its establishment in late 2007.