Seelig sues for 'adviser' fees

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The Independent Online
ROGER Seelig, who resigned from Morgan Grenfell over the Guinness affair in 1986, used his goodwill with the merchant bank three years later to persuade it to take on an unattractive client, Mr Seelig told a court yesterday, writes Jason Nisse.

Mr Seelig told the Westminster County Court that he called Guy Dawson, Morgan Grenfell's head of corporate finance, in October 1989 to persuade the bank to take on Touchstone Group, a loss-making computer firm, as a client.

Mr Seelig, who is suing Touchstone for pounds 28,750 that he says he is owed in fees, said Touchstone's application to be a client of Morgan Grenfell was 'unlikely to be received with much enthusiasm had they made the approach themselves'. He added: 'I used my goodwill and best endeavours to make sure the application would be properly considered.'

Morgan Grenfell was appointed Touchstone's merchant banking adviser five weeks later.

Mr Seelig also said he used his 'best endeavours' to secure the services of David Ewart, the former finance director of Morgan Grenfell, as a non-executive director of Touchstone in March 1990. Mr Ewart became the chairman of the company later that year.

Mr Seelig said he continued to advise the company until it received a hostile bid from the investment company Stratagem, in January last year.

'It was not politic, given the Guinness background, for me to be seen to be advising alongside Morgan Grenfell,' Mr Seelig said.

Earlier this year charges against Mr Seelig, relating to the Guinness affair, were dropped after Mr Justice Henry ruled that he was not mentally fit enough to defend himself. The case continues.