May 11 (Reuters) - Watchstone Group Plc WTGW.L :
* Received further correspondence from firm of solicitors for Slater And Gordon stating intent to issue proceedings by end of May
* Denies any misrepresentation in strongest terms, remains satisfied that neither warranty claim nor misrepresentation claim have merit
* Letter states SGH intends to make claim for about £600m
* SGH intends to make claim on the basis that but for fraudulent misrepresentation it would not have entered into transaction at all Source text for Eikon: ID:nRSK7958Ea Further company coverage: WTGW.L