Danish Investors in Bankrupt OW Bunker to Sue IPO Banks

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A group of 24 Danish institutional investors in OW Bunker said on Tuesday it would sue Carnegie Investment Bank and Morgan Stanley, accusing both of misleading them about the 2014 listing of the now bankrupt marine fuel oil supplier, Reuters reported. The investors, including two of Denmark’s largest pension funds, ATP and PFA, say they lost 767 million crowns ($123 million) after buying OW Bunker shares “on the basis of a prospectus which was insufficient in material aspects”. Denmark’s OW Bunker was valued at $1 billion when it floated in March 2014, but the company filed for bankruptcy in November that year after suffering hedging losses of almost $300 million, sending shockwaves through the global shipping and oil trading industry. Morgan Stanley declined to comment on the lawsuit, while Carnegie defended its handling of initial public offerings, saying it would contest any claims against it. It said it did not know the details of the writ. “But as we have stated many times following the bankruptcy of OW Bunker in 2014, we are confident that we have all necessary routines, quality standards and people in place to conduct proper IPOs and we will defend any claims vigorously,” a Carnegie spokesman said in a written response to Reuters. Read more.