NEW YORK—An unidentified banker at Wall Street firm Morgan Stanley allegedly leaked details of a merger involving Advanced Micro Devices Inc. in 2006, according a court filing in a closely watched insider-trading case.
The banker allegedly leaked details of AMD's bid to acquire ATI Technologies Inc. in May 2006 and the information was allegedly later passed to Galleon Group founder Raj Rajaratnam, according to a letter federal prosecutors wrote to Mr. Rajaratnam's lawyers on Thursday. The banker's name and the person who allegedly provided the tip to Mr. Rajaratnam are redacted from the letter
Federal prosecutors in Manhattan had previously alleged that Anil Kumar, a former McKinsey & Co. consultant, also provided details of the AMD-ATI tie-up to Mr. Rajaratnam.
Mr. Kumar, who has previously pleaded guilty in the case and is cooperating with prosecutors, has told the government that he was paid $2 million for providing tips to Mr. Rajaratnam. Mr. Rajaratnam has denied paying the money.
The letter was filed Friday as an exhibit in connection with a request by Mr. Rajaratnam's lawyers to quash a new subpoena to Galleon seeking additional information on trading by Mr. Rajaratnam, as well as emails regarding certain stocks.
"We have placed the banker on leave and we are fully cooperating with the government's investigation," a Morgan Stanley spokeswoman said in a statement.
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