ATHENS Aug 2 A Greek prosecutor has filed
charges against investment bank Morgan Stanley for
violating securities laws while acting as an adviser in a Greek
bank takeover bid, court sources said on Thursday.
The prosecutor has accused Morgan Stanley of raising its
stake in Greece's Alpha Bank while it advised National
Bank on plans to acquire its smaller rival.
The prosecutor said Morgan Stanley used privileged
information to its advantage and made inaccurate statements to
the stock exchange. Both charges are misdemeanors under Greek
law. Morgan Stanley had no comment on the matter.
Greece's biggest lender National Bank made an all-share bid
in February last year for third-largest lender Alpha Bank, which
rejected the move.
Alpha later said Morgan Stanley had increased its holding in
the lender to 5.1 percent from 4.965 percent, adding that the
transaction was unsolicited.
The charges against Morgan Stanley are the outcome of an
investigation by prosecutors on whether talks between National
Bank and Alpha were leaked for stock market speculation.
The Greek bourse briefly suspended trading in both banks'
shares last year after rumours of a possible bid caused them to