GPG's underwriting court case cancelled

Wednesday 6th August 2003

GPG's court case over the underwriting of the Tower rights issue, and the associated meeting with the Takeovers Panel have cancelled.

The Takeovers Panel meeting was to determine whether GPG, as lead underwriter, could rely on clause 19 of the Takeovers Code which requires underwriters to sell down any shareholding held in excess of 20% within 6 months.

GPG's view was that it was entitled, as an "underwriter", to rely on clause 19 of the class exemption.

The Panel's preliminary view was that GPG was not entitled to rely on the class exemption, however it granted a specific exemption which required GPG to dispose of any excess shares within the shorter of 30 days or until Tower held a shareholder meeting.

GPG initiated proceedings in the High Court in an endeavour to have the matter resolved by the Court.

However, now it is clear GPG will have less than 20% of Tower the issue is effectively dead.

The Panel has therefore agreed with GPG on the following course of action:
· GPG is to discontinue its proceedings against the Panel in the High Court;
· The Panel's hearing scheduled for 7 August 2003 has been cancelled;
· The Panel will revoke the specific exemption it granted to GPG.

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