Proactive Investors - Morgan Stanley (NYSE:MS) has again denied any wrongdoing as a writ brought against the merchant bank by Mike Ashley’s Frasers group over a stake the retailer bought in Hugo Boss.
Frasers alleges it was asked for a margin call (deposit) of £1bn related to the holding because executives at the bank intended to cause it harm and did "not like Mike Ashley".
FTSE 100-listed Frasers believes the call was “arbitrary, irrational, capricious, and/or in breach of good faith and/or market practice” and “out of all proportion to any risk to which Morgan Stanley was exposed.”
The retailer was subsequently able to move its stake in Boss, which had been built through options and shares, but claimed it had suffered significant reputational and commercial damage.
Morgan Stanly denies any wrongdoing and says the case is "contrived" from a company with which it never had a contractual relationship.
The case continues.