INSTANT VIEW: MUFG revises terms of Morgan Stanley investment

NEW YORK (Reuters) - Mitsubishi UFJ Financial Group on Monday said it had followed through with plans to buy a stake in beaten-down Morgan Stanley, though at more favorable terms, while several papers reported the U.S. government offered to support the Japanese bank's investment.

Morgan Stanley shares were up 27 percent at $12.36 in premarket trading.

The following is reaction from industry analysts and investors:

KEN CRAWFORD, SENIOR PORTFOLIO MANAGER, ARGENT CAPITAL MANAGEMENT IN ST LOUIS, MISSOURI

"I think it's positive. Morgan Stanley could raise the capital it needed and cleared the doubts about the deal.

In the long term, it depends on what happens in the markets. I think there are still some doubts about whether the single investment bank model can survive."

ALBERT YU, ANALYST AND PORTFOLIO MANAGER AT CLOVER CAPITAL MANAGEMENT IN ROCHESTER, NEW YORK

"I think it's a good sign that they were able to get it done....I think that any kind of completion should make people pretty happy."

"I think there's certain been some damage (to Morgan Stanley's business over the last week) but they need to get something done and this will give them an opportunity at least to try to re-earn some of that customer trust."

"I think at this point they just needed something to keep them going."

PETER BOOCKVAR, EQUITY STRATEGIST, MILLER TABAK & CO, NEW YORK:

"The deal is closed. It's done. Everyone was worried about whether it gets done. It's different terms, but it's done and I think people should breathe a sigh of relief that it's done. It will help psychologically."

(Reporting by Ellis Mnyandu, Juan Lagorio and Elinor Comlay)