Morgan Stanley plans to sell as much as 20% of itself to Mitsubishi UFJ Financial Group Inc., Japan's largest banking company, to shore up capital as it prepares to convert from a securities firm to a banking company.

Mitsubishi UFJ said Monday that it has agreed to buy 10% to 20% of Morgan Stanley for up to $8.4 billion, and that it will start due diligence before determining a final price.

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