Changes abandoned after firm compromise

From the Swindon Advertiser, first published Friday 3rd Jan 2003.

WARMINSTER-based mobile phone company PNC abandoned a general meeting earlier this week called by a disgruntled shareholder aiming to unseat the majority of the group's board.

Geremy Thomas, founder of the group and 17.5 per cent shareholder, convened the meeting on Monday with the aim of removing the group's board, with the exception of finance director David Bradfield.

But the group said that following talks between the board and Mr Thomas, a compromise had been struck and the meeting was abandoned.

Mr Thomas was seeking to remove chairman Lord Stevens of Ludgate, chief executive Ian Gray and three non-executive directors in order to take executive control of PNC, which owns the KJC chain of 51 mobile phone shops.

But now under the new deal Mr Thomas will join the board as a non-executive director, although Lord Stevens has resigned.

Announcement of the agreement came just one hour after PNC issued a statement saying no compromise had been reached and the meeting would go ahead.

The turnaround came amid the group warning that change of management could have serious consequences for the firm.

It said a major supplier had announced plans to withdraw credit and demand an outstanding balance to be paid if there was a change in management control. This could have left PNC with insufficient funds to continue trading.

In a statement the group said: "Consistent with the mutually agreed objective the combined board will work together to enhance shareholder value."

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