LGV director lied over McBride deal

A DIRECTOR of Legal & General Ventures, the investment arm of the insurance giant, has admitted in the High Court that he lied in a memorandum about the management buy-in of McBride, the household prod- ucts group that was formerly the Consumer Products Division (CPD) of BP Nutrition.

Adrian Johnson testified last week that he wrote a note to himself saying the investment syndicate backing the proposed MBI in 1993 had agreed to sever its ties with George Hosking, a member of the team. But questioned on the stand he admitted: "It is not strictly true." This prompted Mr Justice Harman to observe that "writing a note which you know is not strictly true is telling a lie on paper".

Mr Hosking is claiming pounds 3.8m from LGV after being forced out of the MBI team because, he says, he refused to go along with figures predicting McBride would have profits of pounds 48.8m to pounds 51m by 1995. His estimates called for the company to show pounds 42.7m by this year, which was closer to the actual profit of pounds 38.6m announced in October.

Mr Johnson denied that he instructed the MBI team to abandon Mr Hosking's approach and massage the projected profit upwards to attract investors.

However, he said in his witness statement that he was concerned that Mr Hosking's figures showed a fall in profits during the first year after the buy-in followed by a rise later, rather than the immediate increase forecast by the company's existing management. "The whole point of installing an MBI team is to enhance the performance of the company beyond that achieved or forecast by the existing management," he said.

Earlier in the case, Michael Handley, now chief executive of McBride, testified that Mr Johnson had "made it very clear" that the investors, particularly the banks, were nervous about Mr Hosking's analytical methods. "They were worried. It was a concept they could not get their mind round. It was intangible. It was lower profits."

Mr Handley also testified that the figures he presented to the syndicate instead of Mr Hosking's were prepared with the help of LGV and its accountants, KPMG.

The defence denies the charges, saying Mr Hosking was undermining the buy-in team by challenging its projections and that he was in breach of contract due to a botched presentation to investors and his absence from several site visits to CPD.

News
peopleFrankie Boyle responds to referendum result in characteristically offensive style
Arts and Entertainment
Highs and lows of the cast's careers since 2004
News
news
New Articles
i100... with this review
PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam