Oct. 3 (Bloomberg) -- Mitsubishi UFJ Financial Group Inc., Japan's biggest bank, denied it plans to merge its brokerage unit with a local subsidiary of Morgan Stanley.

A report by Japanese broadcaster NHK saying the two units will merge is untrue, Takashi Takeuchi, a spokesman for Tokyo- based Mitsubishi UFJ, said by phone. Mitsubishi UFJ will decide the details of its capital alliance with Morgan Stanley by the end of June, the bank said in a statement to the Tokyo Stock Exchange.

Mitsubishi UFJ agreed last month to buy $3 billion of common stock and $6 billion of convertible preferred stock in the Wall Street firm.

``Nothing concrete has been decided,'' said Mika Watanabe, a Tokyo-based spokeswoman for Morgan Stanley. The company is ``looking forward to continuing discussions over all the options to maximize the strategic benefits of the global alliance'' with Mitsubishi UFJ.

NHK reported the merger of the brokerage units on its Web site, saying the timing and other details of the deal haven't been decided. It didn't say where it obtained the information.

To contact the reporters on this story: Finbarr Flynn in Tokyo at fflynn3@bloomberg.net; Kazu Hirano in Tokyo at khirano1@bloomberg.net

Last Updated: October 2, 2008 22:20 EDT