THE British Co-operative Wholesale Society (CWS) yesterday dropped legal action against investment bank Hambros after it received an unprecedented apology from Hambros chairman Sir Chips Keswick.

Keswick, a prominent figure in the City who had earlier refused to countenance criticism by CWS of the bank's conduct in advising entrepreneur Andrew Regan's Galileo in its attempt to take over CWS, offered an unreserved apology to CWS chief Graham Melmoth. Both sides declined to comment on whether Hambros' apology had been accompanied by any financial settlement.