Media Square legal pursuit of Porta Communications CEO David Wright to continue following MBO
Following the MBO of Media Square by chairman Roger Parry and director Peter Reid, it has been confirmed that it intends to continue its legal pursuit of Porta Communications CEO David Wright.
Yesterday, it was announced that MSQ Partners, led by Parry and Reid, had bought out AIM listed Media Square LTD, after it refused financial help from its bank, Lloyds. It has been reported that the deal cost between £10m and £15m.
The sale took place after share trading was suspended for Media Square LTD, with some suggesting that a ‘pre-package’ had been arranged due to the speed of the takeover.
Earlier this month, Media Square began legal action against Citigate founder David Wright, now CEO of Porta Communications for £760,000, claiming that he led ‘an unlawful conspiracy’ to back the acquisition of all or part of the Media Square Group.
It was also reported that Wright considered a bid to buy the group following the share trading suspension.
A spokesperson for Media Square confirmed that it would continue the legal challenge, despite the takeover.
Meanwhile, PricewaterhouseCoopers LLP has been appointed as administrator for Media Square LTD.