I am back. So is SGH, page-847

"But i presume all LT shareholders can make a wild guess that SGH has raised serious issues with WTG re sale".................

..........the way I read it (it is after all coming from WTG) is that the questions being raised are around why in the 2 years since the S&P agreement was signed WTG hasn't had a penny out of the 53,000 NIHL claims SGH paid it nothing for.

AG said publicly many times around deal time that he knew what he was buying and SGH had done its own due diligence that showed SGH would pay 7.1 times earnings for PSD. Big talk - no doubt those putting money into the placing, plus SGH's bankers, were mighty impressed. The deal was completed before independently appointed PwC had even fully completed their review.

For WTG to make an impairment provision against the warranty escrow in the circumstances is entirely what would be expected. You and others are reading a lot too much into it. It is prudent accounting by WTG (which I don't hold shares in) and not an admission of anything. It seems to be being suggested that Lord Howard and other newly appointed directors of what was then QPP in some way deliberately deceived SGH's team of 70 DD lawyers, who worked through 8000 cases chosen by them covering the whole spectrum of QPP's PSD, plus however many E&Y people were engaged for months on the financials and whoever else - has a DD process ever been more thorough? SGH "bought" the economic and legal interest in the 8000 cases in return for a 4 month exclusivity period.

Even the FSA/FRC/SFO aren't interested in the period of QPP's life after KPMG were appointed auditors, which from memory was about 18 months or so before the PSD was sold to SGH - it's the period before that, when the share price was being talked up based on numbers(allegedly) falsified by Rob Terry and maybe others the SFO is interested in - if it IS in fact interested. It all depends on whether there's anything in it for the SFO because that's the way regulation works in the UK now.

AG bit off way more than he could chew when he bought the PSD. He failed to turn it around - the UK legislative changes and huge shorting attacks didn't help much so he's not to blame for everything. The PSD itself was any number of PI law and other businesses cobbled together in a short period by Rob Terry - it was a bit like SGH itself in this regard. My guess is that AG was desperate for the deal because it was big enough in which to hide the sins of the past (overstated profits that were catching up with him - roll it all up into one and make a big write-off before then going on to record a spectacular recovery - 'businessman of the year' awards in abundance: "hey ho - he's the man".

Unfortunately it didn't turn out as he'd hoped it would, but that's no reason to blame others for delegating the integration of a business twice the size of SGH was then to others below top management level and failing to recognise 6 months post acquisition that there were serious problems. Either that or the market was deliberately misled. You choose.

No point in raking over the coals - this was all discussed ad nauseum a long time ago. WTG isn't going to be your saviour, Ktech/SWC. It could take years to settle as I should think WTG will fight it all the way. You'll have to find something else to pump the price on. I see it's still falling.

5 cents soon.

all imho/dyor