Maclen Ltd launches legal proceedings against Northern Songs Ltd

Beatles seek Northern audit

THE BEATLES have appointed the accounting firm of Arthur Anderson to carry out an audit of Northern Songs, their publishing outfit, which was recently the subject of a take-over battle with ATV.

But although the audit is now taking place the Northern Songs board, on which the Beatles are not as yet represented, has objected to the scope as initially envisaged.

ATV’s finance director Jack Gill told RR that there was no opposition to a standard record industry audit into collection and payment of royalties. However, a full audit had been refused as being against commercial practice.

“If the representatives of the Beatles wish to sit down and talk about the interests of all share-holders in this public company, then of course there is no objection. But we can’t allow one share-holder, no matter how important, to have information not available to all other share-holders, of which there are many thousands,” he said.

“We are not asking for the audit as share-holders, but only as composers,” commented Allen Klein, the Beatles’ business manager.

ATV last week increased its stake in NS from 35 per cent to around 38 per cent. With the Beatles now owning a maximum of 35.5 per cent, the stock brokers consortium which holds the balance of power with a 14 per cent share is believed to have had approaches from A. J. Butler, an American broker.

Although acting independently Butler is regarded as being friendly towards the group, and if he succeeds in purchasing the shares then they are likely to be under a put and call offer for 18 months. Under such an arrangement, it is understood, there would be no need for Butler to make an offer for the whole company.

From Record Retailer – September 20, 1969

BEATLES ISSUE A WRIT OVER SONGS

TWO rows over the Beatles’ songwriting company Northern Songs are threatening to explode.

John Lennon and Paul McCartney, the two main songwriters in the group, have issued a writ against Northern Songs, which is now controlled by Associated Television. They are claiming extra royalties from past public performances of their songs. Sir Lew Grade, head of ATV, confirmed yesterday that the writ had been issued. Northern Songs is to fight the claim.

The company is also heading for trouble in the City. At a meeting in London yesterday, ATV said that it had now bought 54 per cent of Northern’s shares, many of which have cost them 40s. each. The City’s “Watchdog” take-over panel considers this a breach of its special code on mergers and takeovers and is anxious that ATV offer a similar price to all Northern shareholders.

This would include the Beatles, who own over a third and who said yesterday that they would be willing to accept a 40s.-a-share offer. But Lord Renwick, ATV chairman, said, “We want the Beatles to remain our partners in this enterprise. We don’t want to buy their shares.”

From Daily Mirror – September 26, 1969

VICTORY FOR ATV IN FIGHT OVER BEATLE FIRM

The battle for control of Northern Songs, the group which publishes the Beatles’ hits, has been won by Associated Television. But it hasn’t won the Beatles.

A statement issued in New York last night by their business manager, Mr. Allen Klein, said that the Beatles and their companies intended to sell all their shares in Northern Songs — totalling about 35 per cent. of the company — to ATV for £2 a share.

But he added: “John Lennon and Paul McCartney have no intention of involving themselves in any further relationship with Northern Songs or ATV, beyond the fulfilment of their songwriting contract to February 1973.”

Mr. Klein also said that all negotiations between the Beatles, ATV and Northern Songs had been terminated by the Beatles. He went on: “The Beatles intend to keep all their rights within their own company, Apple, which has divisions in records, music publishing, motion pictures and television. After discussions with the Beatles’ solicitors and after taking advice of counsel, the writs served upon Northern Songs by the Beatles’ own Maclen Company will not be withdrawn and a statement of claim will be served within the next few days.”

The writs concern extra payments which the Beatles claim as royalties on past performances of their songs. ATV chief Sir Lew Grade said last night: “We have already announced our offer — we’re delighted this has now been accepted. We are now expecting some brilliant music from the Beatles.”

From Daily Mirror – October 16, 1969