Stratagem directors in £375,000 pay-off

Stratagem, the troubled mini-conglomerate, has paid out nearly 5 per cent of its market value to two former directors who resigned more than a year ago.

The pay-off, to settle a bitter dispute over the duo's departure, came only a few days before an £8.28m offer was made for the company by a consortium led by its largest shareholder, Christopher Mills of fund manager JO Hambro. Mr Mills made the unsolicited offer last Thursday. However, when The Independent on Sunday contacted Mr Mills' office to discuss the bid, a secretary said he was on holiday and would not return until Tuesday.

Stratagem has been riven by internal strife since Tudor Davies, a company doctor, arrived two years ago to turn around the ailing mini-conglomerate, whose interests have included refrigeration, car dealerships, door making and electronics. He fell out with founders Bernard Kerrison and Putzi de Margary, who were forced out of the company. Mr Kerrison received £119,000 for loss of office and Mrs de Margary £101,000. Both later claimed they had been unfairly dismissed, saying Mr Davies had not followed due procedures and that Mr Kerrison had been made to resign while on sick leave.

The case was due to be heard at a London employment tribunal earlier this month, but before anybody was called to give evidence, Stratagem settled, paying the pair £375,000. This makes the total cost of ejecting the duo more than £500,000 once Stratagem's legal costs are taken into account.

The payouts have added to the woes of a company that has put its refrigeration business into administration, paying £1m to the administrators to settle a property sale dispute, and lost its lucrative BMW franchise, and incurred a massive deficit in its pension fund.

The sorry tale looks likely to endwhen a consortium led by Mr Mills and backed by merchant bank Dawnay Day makes a £8.28m offer for the group. The Stratagem board has yet to accept the offer but as the consortium controls 53 per cent of the group's shares, it appears to have little choice.