主题：国投买Morgan Stanley了 -- 楚客

we are issuing approximately $5 billion of securities to the China Investment Corporation (CIC) that mandatorily convert into shares in August 2010. This additional equity capital will build the firm's strong capital position and enhance our ability to pursue global growth and revenue opportunities.

Mandatory convertible securities we are issuing to CIC targeted yield of 9% and the after-tax profit approximately 7% because significant portion of the yield is tax deductible. Therefore, the after-tax yield of these equity securities is only 4.75% over our common dividend yield.

In return for this excess yield of these equity securities, we retain the first 20% depreciation of our stock price. We believe that the combination of paying less than 5% annual excess yield probably two years and seven months, the return for 20% premium is attractive to our shareholders. The 20% premium will be set above a reference price to be determined shortly.

The number of shares the mandatory convertible securities will convert into is based on our stock price of conversion. A higher future stock price lowers the cost of the equity capital because the number of shares issued at conversion declines.

Given this feature and the tax deductibility of the yield on the combination of regulatory capital eligibility and high equity trading from the rating agencies, we believe this is an attractive security to add to our capital base, as we pursue growth and revenue opportunities in 2008 and beyond.