MGN SETTLES DISPUTES

Mirror Group Newspapers has provisionally agreed to settle a series of legal disputes with the private companies of the late Robert Maxwell; the deal has to be approved at an extraordinary general meeting on 23 Sep. The agreement removes the potential for long and uncertain court action. MGN will abandon potential net claims of at least £130m against the private companies in return for counter legal actions against MGN being waived, allowing it to release £19m in provisions. In exchange for a payment of up to £2.8m, MGN will be assigned losses from the private companies which will reduce its tax bill by up to £56m for 1989-91.