![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Saturday, September 24, 2011 10:59:22 AM
Hedge Fund Sues Morgan Stanley Over Sino-Forest Options Deal
By Kit Chellel - Sep 23, 2011 2:50 AM MT .
...
Hedge fund Oasis Management LLC sued Morgan Stanley for C$9.5 million ($9.3 million) over options in Sino-Forest Corp. (TRE) bought before the Toronto-listed timber company’s stock plunged 71 percent in two days in June.
Morgan Stanley failed to settle the options contracts in an effort to “limit its liability,” Oasis said in a lawsuit filed in London in July. Hong Kong-based Oasis bought options to sell Sino-Forest at C$19 on May 12, three weeks before shares fell to C$5.22 on allegations it had overstated forestry holdings.
Shares in Sino-Forest have fallen 74 percent since June 1, the day before short-seller Carson Block’s Muddy Waters LLC research firm said the company had overstated its holdings. While investors including hedge fund manager John Paulson and billionaire Richard Chandler took losses when Sino-Forest shares sank, holders of put contracts could reap returns from selling stock at prices far above the present value.
The Oasis deal will cost Morgan Stanley (MS) C$7.5 million to settle, the hedge fund said it its court filing. The put options are valued at C$9.5 million, compared with C$2 million for the equivalent shares, it said in the lawsuit. Oasis paid Morgan Stanley a premium of C$770,000 for the options in May.
New York-based Morgan Stanley claimed the options were terminated because trading in Sino-Forest’s shares was suspended, Oasis lawyers said in the filing. The bank offered Oasis C$3.8 million to cancel the deal, the hedge fund said in the lawsuit.
Morgan Stanley spokesman Michael Wang declined to comment yesterday. Katie Bolton, a Hong Kong-based spokeswoman for Oasis, declined to comment.
The Ontario Securities Commission halted trading in Sino- Forest on Aug. 26, saying the company appeared to have misrepresented its sales and timber stocks.
Sino-forest, which last traded at C$4.81 on Aug. 25, has set up an independent committee to examine the allegations in the Muddy Waters report. The company’s chief executive officer Allen Chan resigned on Aug 28.
To contact the reporter on this story: Kit Chellel in London cchellel@bloomberg.net
To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net
http://www.bloomberg.com/news/2011-09-23/hedge-fund-sues-morgan-stanley-over-sino-forest-options-deal.html
MooseO
Recent IDCC News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:52:36 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:48:39 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:47:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:45:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:40:30 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:37:32 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:31:56 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/26/2024 12:30:03 PM
- InterDigital Announces Date for Second Quarter 2024 Financial Results • GlobeNewswire Inc. • 07/18/2024 12:30:00 PM
- UK Court of Appeal rules in favor of InterDigital in dispute with Lenovo • GlobeNewswire Inc. • 07/12/2024 01:10:00 PM
- InterDigital Announces Convertibility of 3.50% Senior Convertible Notes Due 2027 • GlobeNewswire Inc. • 07/03/2024 08:00:00 AM
- InterDigital signs license agreement with Google • GlobeNewswire Inc. • 07/02/2024 08:00:00 AM
- Form 11-K - Annual report of employee stock purchase, savings and similar plans • Edgar (US Regulatory) • 06/20/2024 12:30:40 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 08:10:56 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 08:10:42 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/12/2024 08:10:29 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/11/2024 09:26:41 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/11/2024 08:51:28 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/11/2024 08:42:45 PM
- InterDigital and Philips to Showcase Volumetric Streaming Technologies Empowering Immersive Sports Experiences at AWE USA 2024 • GlobeNewswire Inc. • 06/11/2024 08:00:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/10/2024 08:30:24 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/10/2024 08:09:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/10/2024 08:06:53 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/10/2024 08:04:08 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/10/2024 08:01:44 PM
Duane Forrester Joins INDEXR as SVP of Search • MONI • Jul 31, 2024 11:46 AM
Lingerie Fighting Championships Help Fulfill Death-Bed Promise With First Major Motion Picture • BOTY • Jul 31, 2024 9:00 AM
Kona Gold Beverage Significantly Reduces Debt from Multiple Holders • KGKG • Jul 31, 2024 9:00 AM
Avant Technologies Opens Equity Line with GHS Investments as Company Explores Expansion into Additional Technologies • AVAI • Jul 30, 2024 8:00 AM
ELEMENT79 GOLD CORP PROVIDES UPDATE ON CHACHAS COMMUNITY CHARTER AND REVENUE GENERATION, M&A ACTIVITIES • ELMGF • Jul 30, 2024 8:00 AM
INDEXR AI Merges With Moon Equity Holdings Corp. (MONI), Creating a Leading-edge Technology Company • MONI • Jul 29, 2024 9:59 AM