Derrick Pountney and his wife held crisis talks with Katie and her stripper husband at their home in Hove, East Sussex on Wednesday.
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Katie Price and Kieran Hayler
But the 51-year-old businessman - who has been married to Jane for 11 years - says the feud was a 'storm in a teacup' but also revealed he didn't know if either marriage could survive.
Speaking about the row, Derrick said: “We are good friends of Katie and Kieran’s and have been good friends of Katie for a good 20 years.
“A lot of this drama has been a storm in a teacup and there’s a lot of misunderstandings to sort out.
“Jane and Katie have had a good old chat here this afternoon.
“Will she and Kieran break up, or could they get back together? I don’t really know.
“As for Jane and I working things out... again, I don’t know.
“This ‘affair’ has not really happened like it has been portrayed. I’ve known about it for about four weeks myself.
“All four of us are good friends, but things between Kieran and Jane just went a bit far.
“There has not been a ‘full blown’ affair going on, it was more like a drunken kiss.
“Now Katie has gone and put the whole thing for everyone to read about on Twitter, which she didn’t really need to do, and a drunk kiss has turned into a full-on affair.
“That’s not the case. I knew about what had happened before today, it’s not new to me.
“There were tears shed here today, all sorts went on. But Katie and Jane talked, they have been friends a long time and they are OK now.
“I was at Katie’s house earlier today and brought Kieran round here. I see myself as the peacemaker of the group.
“Everyone is just about on speaking terms now. I hope they can work it out.”
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Katie arrives at Derrick and Jane Pountney's home yesterday for crisis talks
“This statement however is from my head, not my heart,” she adds. “I am appalled that someone I loved, trusted and believed in has behaved in this way. If he had so little respect for our relationship I would have hoped he would have thought about our child or the one that we have on the way.
“That he did not means he will no longer be part of my life. I will do all I can to ensure he maintains a relationship with his children should he want that.
“I am so grateful for the love of my children and family at this time.”
Katie Price's Past Men...
Frank Lampard(01 of12)
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Katie says to have never gone "all the way" with Frank (how charming), but claims the two had a fling earlier in their respective careers.In 2009 she even told Glamour: "There's actually quite a few little footies I'd do. I'd probably go back to Frank Lampard, finish what I started."Poetry in motion (credit:Getty Images)
Teddy Sheringham(02 of12)
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Frank isn't the only footballer Katie's been with in the past, as her childhood sweetheart revealed in an interview in 2011 that he was devastated when Katie cheated on him with Teddy Sheringham.He later dated Katie's friend Danielle Lloyd. (credit:Getty Images)
Warren Furman(03 of12)
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Kelly Brook isn't the only star with a taste for 'Gladiators', as Katie dated Warren Furman, better known as 'Ace' on the 90s Saturday night entertainment show, for two years until they split in 1998.Warren later revealed that he thinks Katie enjoys "grinding men down" emotionally. (credit:Rex/ITV)
Gareth Gates(04 of12)
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When Katie revealed to the press that she'd had a fling with 'Pop Idol' runner-up Gareth Gates - who was 17-years-old at the time - he denied the claims, though later admitted that he had been with Katie for around "three or four months".During an appearance on 'The Big Reunion' he claimed she "ruined" his career, though in her defense we don't think it was Katie who forced him to do a charity duet with The Kumars/ (credit:Getty Images)
Ralf Schumacher(05 of12)
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Racing driver Ralf denies ever having been involved with Katie, though she says they had a three-year affair. (credit:Getty Images)
Dwight Yorke(06 of12)
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Katie dated footballer Dwight Yorke, and he later fathered her first child Harvey, though the former glamour model says they have no relationship and as recently as 2013 claimed Dwight was "missing out" by not seeing his son. (credit:Getty Images)
Danny Cipriani(07 of12)
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Kelly Brook was furious when Katie revealed in her book 'Love, Lipstick And Lies' in 2013 that she had briefly dated her then-boyfriend Danny Cipriani in 2011, dumping him after she found him in bed with another woman. (credit:Getty Images)
Dane Bowers(08 of12)
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Katie was also lucky enough to date former Another Level singer Dane Bowers. Their relationship is probably most famous because of the much-shared sex tape that stemmed from it, though we'd honestly rather not think about that if you don't mind... (credit:Getty Images)
Peter Andre(09 of12)
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Probably the most famous of Katie's relationships, the loved-up pair met on 'I'm A Celebrity...Get Me Out Of Here!' and after marrying in 2005 became ITV2's equivalent of the Royal Couple. Unfortunately, they ultimately divorced just days before their fourth wedding anniversary, and their relationship since has been frosty to say the least. (credit:Getty Images)
Alex Reid(10 of12)
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Not long after splitting from Peter, Katie began dating wild child cage-fighter and occasional actor Alex Reid, marrying him just days after he was crowned winner of 'Celebrity Big Brother'.They ultimately divorced, with Katie branding their marriage a "rebound" in 2014. (credit:Getty Images)
Leandro Penna(11 of12)
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Despite the language barrier between them, Katie announced in April 2012 that she was engaged to Argentinian model Leandro Penna, who she'd met at the Oscars, of all places.Just six months later Katie revealed they'd "mutually" decided to end their engagement. (credit:Getty Images)
Kieran Hayler(12 of12)
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Which brings us back to Kieran, a builder and occasional stripper who Katie married in a private ceremony in the Caribbean back in January 2013.Shortly after giving birth to his son Jett - Katie's fourth child - they unknowingly conceived another baby, with Katie not realising she was expecting until six months into her pregnancy. Around this time, tweets were posted on Katie's Twitter account announcing she was divorcing him. Next! (credit:Getty Images)