Source: Morgan Stanley Holds Takeover Talks With Wachovia, CITIC

Source: Morgan Stanley Holds Takeover Talks With Wachovia, CITIC

Morgan Stanley (MS.N), which saw its stock pummeled Wednesday on worries it may not survive the credit crunch, has held preliminary takeover talks with Wachovia Corp (WB.N), a person familiar with the situation told Reuters.

Separately, CNBC reported that Morgan Stanley was having deal discussions with CITIC, the China-controlled conglomerate that owns brokerage firm CITIC Securities (600030.SS). Morgan executives could not be reached immediately for comment on these talks.

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