The on-going saga between Inveresk and Klippan Paper seems to have swung in favour of the Scottish paper group, with the news that Phillips & Drew has withdrawn its support of Klippans plans.


"The strength and quality of Ken Mintons appointment seems to have had an effect," said Inveresk group finance director Gerard Cassels.


Phillips & Drew, an investment fund management firm owned by UBS Asset Management, holds a 17% stake in Inveresk, while Klippan Paper chairman Jan Bernander holds a 22% stake.


Bernander has been steadily increasing his stake with a view to a possible merger of the two firms.


A spokeswoman for Phillips & Drew said: "Any pledge of support for Klippan made earlier in the year was not viewed as binding."


She said the company felt that "changes made at board level at Inveresk had been very positive".


With the support of Phillips & Drew, Bernander was understood to be seeking election to Inveresks non-executive board at the AGM on 29 June, along with his associate, London-based accountant Alan Walker.


Cassels said that an air of optimism had swept into the company since the appointment of former Arjo chair Ken Minton as chairman (PrintWeek, 18 May).


"It seems this new optimism has also been felt by the shareholders," he added.


Inveresk has also confirmed the resignation of two non-executive directors from its board chairman William Goodall, and Ian Mair Boyd.


Alan Cole has been proposed to join the board as a non-executive director and will seek election at the AGM in June.


Story by Andy Scott