NEWS: Ketchum settles dispute with Group PR directors

Ketchum International Incorporated has settled its dispute with Group PR, ending a two-and-a-half year legal wrangle.

Ketchum International Incorporated has settled its dispute with Group

PR, ending a two-and-a-half year legal wrangle.



The row centres on Ketchum’s purchase of a 40 per cent stake in Group in

1991. Under the terms of the deal Ketchum agreed to buy the remaining

Group shares in March 1994 for pounds 2.6 million.



But in September 1993 and again in July 1994 Ketchum International

Incorporated, which represents Ketchum investments outside the US,

issued writs against Group’s founders Chris O’Donoghue and Pamela Poe

following a dispute over share dividends.



As a result of the first action Ketchum failed to buy the remaining

Group shares, prompting a counter writ by O’Donoghue and Poe in April

1994. The three claims were rolled into one action which went to court

in November 1995.



Taking into account the dividend dispute, the High Court ruled last

Friday that Ketchum should now pay pounds 2.25 million for the remaining

60 per cent of Group. The decision means that the agency, which has

traded as Ketchum PR since 1993, will be a wholly-owned subsidiary of

the Ketchum network.



‘I think the court reached an equitable decision and it’s good to have

that out of the way,’ said Ketchum Europe managing director Jerry

Olszewski.



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