WARD CRITICISES GUINNESS'S FEE COMPLAINT
Guinness Plc <GUIN.L> director Thomas
Ward told a High Court hearing that the company's action
against him and ex-chairman Ernest Saunders sought to give the
impression of an international hunt for Ward's 5.2 mln stg fee
in connection with the Distillers Co Plc <DIST.L> takeover, the
Press Association news agency reported.
    In a sworn statement, Ward, a U.S. Lawyer, said Guinness
had failed to acknowledge that his attornies in March had
offered to put the money, less tax and various expenses, into
an escrow account where it could only be touched under agreed
circumstances.
    Ward said Guinness had made a transparent attempt to
belittle his services, the PA reported.
    "I wish to emphasise that the fee paid for my services was,
when considered out of context, admittedly very large."
    But every aspect of the (Distillers) bid - the size of the
target, the benefit to Guinness from success, the potential
damage from failure, the difficulties of the issues raised and
the cost for all services - were not merely large but virtually
unprecedented in the history of English takeovers," Ward said.
    Failure would have cost Guinness between 25 mln stg and 100
mln stg, he added.
    Ward said it was his idea to have a merger agreement with
Distillers under which Distillers agreed to pay Guinness's bid
costs, the PA reported.
    Ward's statement was read to the court by his lawyer Peter
Curry. Ward and ex-Guinness chairman Saunders want to end a
temporary court freeze of their assets up to the disputed
amount of the 5.2 mln stg fee which Guinness is trying to
recover.
    Guinness acquired Distillers in a fierecly fought 2.7
billion stg battle during 1986. The U.K. Government is also
probing the affair and has yet to report.
 Reuter
