Morgan Stanley's Germany Head Steps Down amid EnBW Investigation
07/17/2012| 12:16pm US/Eastern
FRANKFURT--The head of investment bank Morgan Stanley's (>> Morgan Stanley) German and Austrian operations has stepped down permanently after taking temporary leave from his duties late last month in the wake of investigations into a utility deal that the bank had advised on in late 2010.
A spokesman for Morgan Stanley in Germany on Tuesday confirmed earlier press reports that Dirk Notheis had stepped down from his post.
Under Mr. Notheis' leadership, the bank advised the state of Baden-Wuerttemberg on the purchase of a roughly 50% stake in EnBW Energie Baden-Wuerttemberg AG (>> Enbw Energie Baden Wuerttemberg AG) from French state-controlled utility Electricite de France SA (>> EDF) for nearly 5 billion euros ($6.1 billion).
According to an outside auditing firm commissioned by the present state administration, the state overpaid at least EUR840 million for the stake.
Mr. Notheis' resignation comes after numerous press reports giving details from an alleged series of emails between the Morgan Stanley Germany CEO and Stefan Mappus, the former state governor of the southern German state.
An inquiry board for the state is investigating the purchase. Prosecutors have also launched investigations against Mr. Notheis and Mr. Mappus.
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