Investment bank Morgan Stanley, which at one time advised one of the failed attempts to sell Bulgartabac Holding, has become a shareholder in the Bulgarian tobacco monopoly [BTH] and its cigarette-making unit Blagoevgrad BT [BLABT]. The bulletin of the Central Depository shows that Morgan Stanley picked through the local bourse the UBS holdings of just over 8% and 5% in BTH and BLABT, respectively. Yesterday, Bulgartabac refused to comment on the emergence of this new shareholder. Experts said the transaction is related to the plans of the ruling coalition to privatise the tobacco monopoly. Morgan Stanley has inside knowledge of the structure and operation of the two companies from the time it acted as an advisor to their restructuring and preparations to go private four years ago. At the time, the investment bank was hired to prepare the financial, legal and market analysis of the Bulgartabac cigarette factories. Politicking ultimately sank that privatisation effort. Some three months ago, the leaders of the three coalition parties said they had reached agreement on the sale of the tobacco company. In mid-May, the Bulgartabac supervisory board decided that the Plovdiv [PLOBT] and Stara Zagora [SUN] units of the company will go private on the local bourse this July. Blagoevgrad BT, which will be allowed to continue to produce the Bulgartabac brands, is expected to be privatised by the end of 2008.