SAUNDERS DENIES "PAPER SHREDDING" ALLEGATIONS
Former Guinness Plc <GUIN.L> chairman
Ernest Saunders dismissed allegations he ordered the shredding
of documents in the early stages of a U.K. Investigation as
"completely untrue," the Press Association news agency reported.
The allegations were made by his former personal assistant
Margaret McGrath, in a statement to the High Court on Friday.
    Saunders' reply was read out by his lawyer at the start of
the fourth day of a hearing, on an application by Saunders and
U.S. Lawyer Thomas Ward for the discharge of "asset-freezing"
orders obtained by Guinness on March 18.
    McGrath alleged that among the documents destroyed were
papers from the files on the <Distillers Co Plc> bid, as well
as diaries, correspondence and an address book.
    The temporary orders froze property owned by the two men
valued about 5.2 mln stg, the sum paid by Guinness into a
Jersey bank last May during the Distillers takeover.
    They are also contesting orders requiring them to disclose
the whereabouts of the money and hand it back to Guinness
lawyers.
 REUTER
