LONDON, May 3 (Reuters) - British retail tycoon Mike

Ashley's Frasers Group ( SDIPF ) has withdrawn its London lawsuit

against Morgan Stanley ( MS ) over a nearly $1 billion margin

call, a spokesperson for the Wall Street bank said on Friday.

Frasers ( SDIPF ) had sued Morgan Stanley ( MS ) for about 47 million euros

($50.5 million) after the bank imposed the margin call -

security to cover possible losses - on the retailer's trading

position in German fashion group Hugo Boss in May 2021.

Ashley, whose fortune is estimated by Forbes to be worth

$5.1 billion, gave evidence at the trial at London's High Court

in February that the demand for collateral left him in "total

shock".

Frasers ( SDIPF ) has dropped its lawsuit before the court gave its

ruling, Morgan Stanley ( MS ) said on Friday.

"Frasers Group plc ( SDIPF ) and Mr Michael Ashley have both withdrawn

their claims against Morgan Stanley ( MS ) on terms which do not

involve any payment of monies by any party to any other," a

spokesperson for the bank said in a statement.

"Frasers ( SDIPF ), Mr Ashley and Morgan Stanley ( MS ) confirm that the

disputes between them are therefore resolved."

Frasers ( SDIPF ) did not immediately respond to a request for

comment.

The company's lawyers had argued the bank changed the

purpose of its $915 million margin call after discovering

Frasers ( SDIPF ) stood behind trades held by its client, Saxo Bank.

Frasers ( SDIPF ) alleged Morgan Stanley's ( MS ) staff saw Ashley as an

"upstart" and used the margin call to force trades held by off

its books partly out of snobbery.

Morgan Stanley ( MS ), however, said it had no contractual

relationship with Frasers ( SDIPF ), only with Saxo, and argued the margin

call was designed to ensure it was properly protected from

exposure to stock market bets.

The margin call came two months after the collapse of family

office Archegos Capital, in which Morgan Stanley ( MS ) lost $911

million.

Saxo and Frasers ( SDIPF ) had settled their case separately before

the trial.