MUFG to raise Morgan Stanley stock buy: report

(Reuters) - Japan's biggest bank Mitsubishi UFJ Financial Group Inc (8306.T) will increase its acquisition of Morgan Stanley's (NS.N) common stock by $105 million to $705 million in efforts to hold more than 20 percent in the U.S. firm, the Nikkei business daily reported.

MUFG will not pay additional cash for the latest transaction. Morgan Stanley will repurchase some of its preferred shares held by the Japanese banking group, and MUFG will use the proceeds to obtain 29.37 million shares for $24 per share, the daily said.

MUFG, which has invested $9 billion in Morgan Stanley last year, had earlier said it will obtain $600 million of the U.S. bank's common shares.

(Reporting by Sweta Singh in Bangalore; Editing by Jarshad Kakkrakandy)