August 18, 2008 3:51 PM

Sullivan, Skadden on Mitsubishi Takeover of UnionBanCal

Posted by Zach Lowe

Mitsubishi UFJ Financial Corp., determined to clinch the 35 percent of UnionBanCal Corp. it doesn't already own, has sweetened an offer put forth last week, and, apparently, third time's the charm.

Mitsubishi, advised by a team from Sullivan & Cromwell, today announced an increased bid of $73.50 a share, up from the $63. per share offer put forth last week. The Japanese bank first expressed interest in acquiring UnionBanCal in April; that $58 per share offer was rejected.

The S&C team is being lead by firm chair H. Rodgin Cohen, corporate partners Donald Toumey and Stanley Farrar, and benefits partner Marc Trevino. Mitsubishi also tapped Japanese counsel Mori Hamada & Matsumoto.

Union's board has turned to a team from Skadden, Arps, Slate, Meagher & Flom, including partners William Rubenstein, Garrett Waltzer, and Tom Allingham.

UnionBanCal, one of the 25 largest banks in the U.S., is healthy compared with most U.S. banks, the Wall Street Journal reports. Its stock price has jumped more than 20 percent so far this, at least in part because of Mitsubishi's climbing offers. Union's second-quarter revenue was up 8 percent over the first quarter.

Mitsubishi, meanwhile, has been struggling to draw a profit at home as the Japanese economy continues to slump, according to the New York Times.

Sullivan & Cromwell's Cohen and to Skadden's Rubenstein did not return calls seeking comment.

 

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