LATEST: Pop superstar Kylie Minogue insists she is still friends with British record producer Pete Waterman despite suing him over unpaid royalties from her GREATEST HITS album.

The Australian beauty, 36, claims Waterman's PAL PRODUCTIONS underpaid her $836,000 (GBP440,000) in royalties from the disc, which was released in 2002.

Despite PAL paying-up $502,000 (GBP264,000), the SLOW singer has now launched a legal battle at the Supreme Court of Victoria

in Melbourne against the man who first put her on the road to fame in 1988 - seeking more money from damages.

However, Kylie insists the legal action is purely business and she is still on good terms with Waterman. She says, "I haven't seen Pete in a long time but, yes, we're still friends."

01/02/2005 13:49