More Buzz Around Morgan Stanley and Wachovia Merger

One of the two last independent, U.S.-based investment banks, Morgan Stanley is in advanced merger talks with Wachovia Bank, according to sources close to the company.

Published on September 18, 2008

Preliminary discussions with Wachovia began on Wednesay and are going on today while Morgan continues to pursue capital from a Chinese bank.

According to people familiar with these discussions, Morgan Stanley Chief Executive John Mack is leaning toward a deal with Wachovia, but that deal will depend on due diligence, which is yet to be completed.

Morgan will begin formal merger negotiations with Wachovia sometime Thursday. The company has put together a deal team to meet with Wachovia's representatives.