ATHENS, Greece (AP) — Greek court officials say a prosecutor has brought misdemeanor charges against Morgan Stanley for alleged insider trading in connection with a planned local bank merger.
The charges made public Wednesday concern a failed takeover bid for Alpha Bank by National Bank of Greece in early 2011. Morgan Stanley acted as an adviser for NBG in its bid.
Court officials said the prosecution followed an investigation into reports that Morgan Stanley bought shares in Alpha during a period from before the merger talks were made public until shortly after they collapsed. The officials said Alpha's shares gained 33 percent at the time.
The charges, if proven, carry a maximum 5-year prison sentence. They did not name specific Morgan Stanley officials, whom a further investigation will seek to identify.