News: SGH Watchstone Group says received correspondence from firm of solicitors for SGH

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