Aberdeen oil boss Bob Kidd is this week battling a law practice in Scotland’s court of session, seeking a huge payout of nearly £350 million.
He is taking action against law firm Ledingham Chalmers and private equity house Lime Rock Partners over a business deal involving ITS Tubular Services, which he founded in 1989.
The firm was later placed in administration, causing a collapse in the value of Mr Kidd’s shares – which he now aims to recover.
Final payout to Mr Kidd may be worth nearly £350m if he wins his case
He is seeking initial compensation of £150m but the final payout could be nearly £350m after 8% interest per year is added.
The case is being heard in Edinburgh and is expected to last five weeks.
Mr Kidd lost an intial action against Lime Rock and Ledingham Chalmers in 2021.
He was seeking around £158m, over an alleged conflict of interest from the latter firm over the sale of his 34.5% stake to Lime Rock in 2009.
At the time, the court said Mr Kidd had already received a “full and final” settlement for his losses when he settled a claim against another law firm, Burness Paull, in 2018 for £20m.
Law firm says allegations ‘unfounded’
Ledingham Chalmers has said it believes the allegations against it are unfounded.
And it insisted it holds itself to “the highest ethical and professional standards”.
Mr Kidd formed ITS Tubular Services in 1989, with more than £4,000 in savings.
The Granite City-based business experienced huge growth, and was worth in exces of £160m, employing 1,000 people, by 2008.
Mr Kidd received an £8m-plus payment for the sale of part of his stake (34.5%) the next year.
But by 2012 ITS had entered financial difficulties and heavy debt, partly due to operations overseas, and Lime Rock was seeking to sell its exposure to the business.
Mr Kidd argued Lime Rock’s involvement led to ITS being placed into administration, and the collapse in the value of his shares.
He claimed in 2021 he would have otherwise achieved an exit worth “about $220 million” (about £178m at current exchange rates).
ITS Tubular Services was later sold to US firm Parker Drilling in a “pre-pack” deal.
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