Stevens resigns PNC Telecom role
MOBILE phone retailer PNC Telecom struck a deal with its founder and major shareholder Geremy Thomas, who had been attempting to force a full-scale clearout of the board. It said a compromise deal had been reached, and today's showdown extraordinary meeting had been abandoned.
But Lord Stevens of Ludgate, the former owner of Express newspapers, is a casualty of the compromise. He is resigning as chairman of the group, which has issued two profit warnings in the past year.
His place will be taken by John Peett, a former director of Vodafone, which is one of PNC's major suppliers. Thomas takes the role of non-executive deputy chairman with one of his allies, Jeffrey Pack, becoming a non-executive director.
Thomas had claimed to have the support of shareholders accounting for about 40% of the shares. He personally had built up a 17.5% stake in PNC. The group, which appointed stockbroker Seymour Pierce earlier this year,said: 'Consistent with the mutually agreed objective, the combined board will work together to enhance shareholder value.' It added: 'Mr Thomas and Mr Pack have undertaken to support the board's efforts to recover amounts due from former directors of the company.'
PNC is suing Darren Ridge, founder of KJC, a mobile phone chain that was bought by PNC, and a former director of PNC. It is also seeking an explanation from him over the disappearance of 18,600 handsets, which it said could be worth up to £2 million.
Ridge denies the claim and is countersuing PNC for wrongful dismissal and seeking payment of £500,000 and the return of property he states is his.
Earlier today, PNC had urged shareholders to attend the meeting and vote down the proposals to remove all but one of its directors. But this was prepared before it reached the 11th-hour compromise with Thomas.
PNC said in its first statement that if there was to be a change in management control, one of its major suppliers would withdraw a line of credit to the company and demand immediate repayment.
This would have forced the company to find 'alternative sources of credit to purchase stock'. If it failed to do this, 'it is the opinion of the directors that PNC will cease to trade'.
PNC shares were steady on the news at 19 1/2p.
