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Talk is cheaper outside the court for ELD and FEG

By Phil Boeyen, ShareChat Business News Editor

Tuesday 12th September 2000

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ElderCare and Fletcher Energy say they will negotiate between themselves to determine the value of ElderCare's preference shareholding in FEG subsidiary, Southern Petroleum Services.

ElderCare says it has settled several matters currently before the High Court with Fletcher Energy, and the two companies have agreed to undertake a process, including legally binding arbitration if necessary, to determine the value of ElderCare's preference shareholding.

"We are pleased to have the valuation issue subject to a negotiation process and, if necessary, arbitration. We believe this is an appropriate and cost-effective method of determining the value of ElderCare's entitlement," says ElderCare chairman, Maurice Kidd.

The parties have also agreed that no further claims of cost will be made with respect to any of the matters currently before the court.

One of the issues which has been resolved is an insider trading action by ElderCare against FEG subsidiary, Southern Petroleum No Liability.

Mr Kidd says comments made by Mr Justice Fisher, and the company's own legal review of the matter, left the board clearly of the view that this action had little chance of success.

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