May 11 (Reuters) - Watchstone Group Plc WTGW.L :
- Received further correspondence from firm of solicitors for Slater And Gordon stating intent to issue proceedings by end of May
- Denies any misrepresentation in strongest terms, remains satisfied that neither warranty claim nor misrepresentation claim have merit
- Letter states SGH intends to make claim for about £600m
- SGH intends to make claim on the basis that but for fraudulent misrepresentation it would not have entered into transaction at all