Mitsubishi UFG in US$3.5 billion deal

Source: Exec Digital USA

Date :8/18/2008 6:52:43 AM

Mitsubishi UFJ Financial Group Inc and UnionBanCal Corp have agreed on an offer at a price of US$73.50 a share in a deal worth US$3.5 billion.

Japan’s biggest bank had been trying to take over the extra 35 percent of California bank UnionBanCal to make it a wholly owned subsidiary.

But UnionBanCal turned down a lower buyout offer last week, feeling the US$3 billion price, or US$63 per share in cash was not high enough.

Mitsubishi UFJ, also known as MUFG, already owns a 65.4 percent stake in San Francisco-based UnionBanCal, and had wanted to buy the remaining interest through a tender offer beginning August 18.