New Issue: Morgan Stanley prices $7.47 million 12.5% RevCons linked to Schlumberger

By E. Janene Geiss

Philadelphia, July 25 - Morgan Stanley priced a $7.47 million issue of 12.5% annualized reverse convertible securities (RevCons) due Jan. 29, 2009 linked to the common stock of Schlumberger NV, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The payout at maturity will be par unless the stock falls by more than 25% during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Schlumberger shares equal to $1,000 divided by the initial share price or, at Morgan Stanley's option, the equivalent cash value.

Morgan Stanley & Co. Inc. is the agent.

Issuer:	Morgan Stanley
Issue:	Reverse convertible securities
Underlying stock:	Schlumberger NV (Symbol: SLB)
Amount:	$7,466,000
Maturity:	Jan. 29, 2009
Coupon:	12.5%, payable monthly
Price:	Par
Payout at maturity:	If the stock falls below the trigger price during the life of the notes and finishes below the initial share price, 10.07354 Schlumberger shares; otherwise, par
Initial share price:	$99.27
Trigger price:	$74.4525, 75% of initial share price
Pricing date:	July 24
Settlement date:	July 29
Agent:	Morgan Stanley & Co. Inc.
Fees:	1.5%

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