Morgan Stanley Pitches Short on Italian Bottle Cap Maker’s Bonds

Morgan Stanley’s credit trading desk is contacting investors with a pitch to short the bonds of Italian bottle cap maker Guala Closures SpA, according to people familiar with the matter.

The pitch highlights high prices for the company’s debt and risks to its outlook. Among them: a balance sheet strained by debt-fueled acquisitions, pressure on sales and the risk of rating downgrades, the people said, asking not to be identified discussing a private matter.