Inveresk warning as shares deadline looms

INVERESK, the paper company founded in the 1920s in Musselburgh, near Edinburgh, has warned it is powerless to prevent its shares being cancelled from trading because of a protracted legal dispute with Tullis Russell.

The Aim-listed company, which now operates only from a mill in Somerset, said the dispute means it is still unable to sign off on its 2008 accounts. Its shares will be cancelled when the accounts become six months overdue on 1 January.

Inveresk sold its core brand, Gemini, for "up to 15 million" to Glenrothes-based Tullis Russell in 2005, a deal which led to the closure of the historic Carrongrove Mill near Stirling.

However, a long-running legal battle followed, with Inveresk thought to be claiming around 910,000 from the sale. Tullis Russell has issued proceedings alleging breach of contract.

Inveresk said the Court of Appeal had found in its favour earlier this year, but Tullis Russell had appealed to the Supreme Court.

Chief executive Alan Walker said that although having its shares cancelled freed the company from some corporate governance requirements, it would continue to publish material events and hold general meetings.

The company is also trying to find a way to allow shareholders to buy and sell shares off market at an agreed price.