A High Court action in which Irish Press plc, owners of the defunct Irish Press group of newspapers, is suing a former adviser - US venture bankers Warburg Pincus - for about ¤60 million (£47.2 million) was yesterday adjourned until today following talks between the parties to settle the dispute.

Irish Press plc directors, Dr Eamon de Valera and Mr Vincent Jennings, claim their company received advice from Warburg Pincus which resulted in the Irish Press group entering a joint-venture arrangement with companies owned by an American newspaperman, Mr Ralph Ingersoll.

The Irish company claims Warburg Pincus was fully aware of and failed to disclose that the Ingersoll companies were in financial difficulties; were not able to meet their commitments; were experiencing serious management difficulties; and were in a state of imminent collapse. Warburg Pincus denies the Irish Press plc claims.

In the early 1990s, Irish Press plc sued the Ingersoll group of companies. It failed to receive damages but was allowed to resume control of the newspapers, which ceased publication in 1995.

In its statement of claim, Irish Press plc alleges that one or more of the Warburg Pincus group of companies was involved in a joint venture with companies controlled by Mr Ralph Ingersoll, in particular with Ingersoll Publications Ltd - a UK company of which Sir Gordon Brunton was chairman.

The letter stated that "Ralph Ingersoll and his talented team provided management expertise and Warburg Pincus provided the Ralph Ingersoll's companies with a view to entering into a joint-venture arrangement. It was proposed the three newspaper titles in the Irish Press group would be transferred to new companies to be jointly owned by Irish Press plc and a new Ingersoll company.

In its defence, Warburg Pincus denies it was a partner in the UK company. It claims it was a "stranger" to the negotiations in 1988/89 with Ralph Ingersoll; denies it made representations about Ralph Ingersoll during the negotiations with the British company's directors; and pleads that, if representations were made to Irish Press plc by the British company's directors, then Warburg Pincus was a "stranger" to such talks. It denies any duty to advise Irish Press plc of the truth or falsity of any representations made by a third party and denies fiduciary duty or duty of care to Irish Press plc .