Mitsubishi offered better terms

Mitsubishi UFJ Financial Group Inc wrested better terms from Morgan Stanley for a $9 billion investment, securing an additional $300 million in annual dividends after the US securities firm's shares dropped.

The entire infusion, giving Mitsubishi UFJ 21 percent of Morgan Stanley, will be in preferred shares paying 10 percent interest, according to a statement on Monday. Under an agreement announced on Sept 29, Mitsubishi UFJ would get $6 billion in preferred shares and $3 billion of common stock.

Mitsubishi UFJ, Japan's largest bank, moved to renegotiate terms after Morgan Stanley shares tumbled 60 percent last week.