Morgan Stanley (NYSE:MS) has denied any wrongdoing in its defence of a writ brought by Mike Ashley’s Frasers group over a stake the retailer bought in Hugo Boss.
Frasers alleges it was asked by the US bank for a margin call (deposit) of £1bn related to the holding because executives at the bank did "not like Mike Ashley" and intended to "cause it harm".
FTSE 100-listed Frasers believes the margin 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 claims it suffered significant reputational and commercial damage.
Morgan Stanly denies it did anything wrong, saying the action is "contrived" and from a company with which it never had a contractual relationship.
The case continues.