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AWG to sue despite Mellor's departure

AWG SAID it still plans to sue former Morrison chief executive Sir Fraser Morrison for £130 million, despite chief executive Chris Mellor being ousted last week.

Mr Mellor, who masterminded the £263 million purchase of Morrison in 2000, left AWG with a £350,000 pay-off after 24 years' service at the water utility.

A writ lodged in February led to a series of personal spats between Mr Mellor, Sir Fraser and Stephen McBrierty, former group operations director at Morrison, who is also being sued.

Sir Fraser and Mr McBrierty, who are accused in the writ of making a series of false claims about the state of Morrison's finances in the run-up to its sale, claimed Mr Mellor and the AWG board did not understand enough about the business they bought.

But an AWG spokeswoman said: 'The litigation is wholly unchanged by Mr Mellor's departure.' Sir Fraser declined to comment. The case is unlikely to be heard in court until spring next year.