SBC staff back claims over L&G
Sunday 03 December 1995
The allegation came in a witness statement in support of a pounds 3.8m lawsuit by management consultant George Hosking, who is suing Legal & General Ventures (LGV) for pounds 3.8m.
Mr Hosking alleges he was forced out of a management buy-in team because he refused to go along with an attempt to massage profit projections upwards to attract investors.
SBC had been brought in to be an equity partner in the purchase of the Consumer Products Division (CPD) of BP Nutrition, now called McBride. He pulled out before the deal went through, taking instead a position as a creditor.
"LGV was well aware - indeed we had written to them about it on 19 March 1993 - that we were concerned about the achievability of the forecasts in the CPD plan," said Richard Bryant, an SBC banker working on the deal, in his witness statement. Mr Bryant also said that at a meeting on the same date the letter was sent, the future chief executive of McBride, Mike Handley, "did not seem to know enough about the CPD plan or what his strategy would be in order to achieve the forecasts contained in that plan, although he did state that he strongly believed there was 'slack' in the capital expenditure plans".
Another SBC official, Gerry Lynch, now managing director of global structure finance at SBC Warburg, said in his witness statement that a week later LGV abruptly changed its view of the business plan put together by the buy-in team from "excellent" to "a load of crap".
Mr Hosking, in his statement, alleged that he received "a number of signals ... [from] Mike Handley or LGV telling me what profit forecasts to produce ... The common factor ... was that the recommended forecasts appeared to be a function of the answer that was 'needed' to make a suitably attractive case for prospective investors".
LGV is contesting all of Mr Hosking's allegations. It claims he undermined the buy-in team by challenging its projections and was in breach of contract due to a botched presentation to investors.
- 1 Benedict Cumberbatch says Hollywood is better for black British actors
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
Rowan Atkinson to sell £10 million McLaren 'supercar' he crashed into a tree and a lamppost
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
US blames Russia after rocket attacks in Ukraine kill at least 30
Warriors in ancient Iraq suffered Post-Traumatic Stress Disorder more than 3,000 years ago, say researchers
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
British Muslim school children suffering a backlash of abuse following Paris attacks
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...