The Tchenguiz-family backed Mercury Group has reached a financial settlement with London agent Smith Melzack Pepper Angliss, which it bought in 2005.

Mercury bought the firm in February 2005 from its directors Ronnie Franks, Stuart Sandler, Clive Orman, Alan Kleinman, Paul Vernon-Smith and Colin Povey for a sum of £1.3m in shares and loan notes.

An initial payment of £200,000 was made with further payments agreed.

The dispute dealt with a notification to the vendors by Mercury in November 2006 of certain claims for breach of warranty relating to PAYE claims.


Mercury said today that in settlement of the PAYE claim and other warranty claims now or in the future, the entitlement of the vendors to further payments would be set-off against the claim.

As such, the final amount to be paid is £182,000 and it will be satisfied via the issue of shares and loan stock.