Lift threatens Morgan Stanley with legal steps over IPO requirements
Morgan Stanley is attempting to renounce his role in assisting early Lyft investors to pursue the rallying company after Lyft threatened to sue them and report them to regulators the post has learned.
Monday post reported that Morgan Stanley, the leading guarantor of Uber's upcoming IPO, had helped Lyft's pre-investors to protect against stock decline – despite the "lock-up" agreements that would block those investors from betting on the company in the wake of
Three sources – including an insider at Morgan Stanley and an investor secured through the bank – confirmed that Morgan Stanley was involved in the games.
On Thursday ̵[ads1]1; Three Days After The Post Story Run – Morgan Stanley requested that the story be updated to include a statement that denied that the bank participated in the hedge activity related to the Lift.
"Morgan Stanley did not market or execute a total of eturn or hedging products, or any short product on Lifting shares, the statement said." We have not directly or indirectly made a short sale for anyone identified by the company or otherwise
But sources, including the pre-IPO investor who secured through Morgan, continue to insist that the hedges occurred.
"We bought shares in a special insurance company, and The individual investors in the particular acquisition chained short stocks through Morgan Stanley, "according to the investor before." Morgan Stanley gave most of the loan to cut the shares. "
It has now come to light that Morgan Stanley's denial comes at the heels of a hardly formulated letter by Lyft, as the question of Morgan Stanley engaged in "tortical interference", according to a copy of letter dated April 2 received by Posten.
Lift letter, which first became portrayed by The Information, also threatened legal action and warned of potential regulatory consequences.
The Financial Industry Regulatory Authority has begun to collect information on the Lift's trade, a source of direct knowledge of the situation told the post.
Meanwhile, Morgan still offered the stakes, known as total return swaps, from Friday night, a Wall Street director told The Post. 19659002] "It's a relatively unethical thing to do, and that's not normal," said that person, adding that it is not illegal either.
Lift was one of the most warm participated in IPOs in 2019. Shares in the transferred IPO increased 21 percent immediately after the Nasdaq debut on March 29 – before the appetite for the card stock grew.
"It's Uber's dirty trick employed," said one source familiar with Lyft's thinking The Post, noting that Morgan Stanley is Uber's leading IPO guarantor.
The stock has recovered its end, ending at $ 74.45 on Friday.
Investment investors are contractually prevented from reducing their "economic interest" in Lyft for six months, which includes short-circuiting the stock. But sources say that Lyft investors worked around the lock-up language by placing the bets so they would not benefit from the decline or increase in the stock. Instead, they are only locked in their IPO gains, which were significant.
Reps from Lyft refused to comment. Morgan Stanley denied further comment.
