Morgan Stanley's merger talks with Wachovia Corp. are over, say people familiar with the situation.
The two companies were reportedly in talks with one another last week, as the banks witnessed stock prices plunge and investors lost confidence in the market.
However, likely due to Morgan Stanley forming a strategic alliance and securing funding from Mitsubishi UFJ Financial Group Inc. and now operating as a bank holding company, talks between the two companies have ceased. The Japanese bank plans on investing up to $8.4 billion in Morgan Stanley.
Morgan Stanley stock price was recently down 4.3% at $26.81. Wachovia's stock was up 1.7% at $15.