American investment bank Morgan Stanley is in preliminary merger talks with regional bank Wachovia, amid recent turmoil in the company's share price due to the instability in global financial and stock markets.
John Mack, CEO of Morgan Stanley, has reportedly received a call from Wachovia, expressing interest in a deal.
CNBC has reported that Morgan Stanley is also negotiating with China’s Citic Group, which owns brokerage firm Citic Securities, and HSBC Holdings, for a possible merger to survive from the current crisis.
Spokespersons of Wachovia and Morgan Stanley have declined to respond to the reports.