Rebels attack PNC Telecom directors

A group of rebel shareholders in PNC Telecom, led by Geremy Thomas, the company's founder and former chief executive, are looking to oust five directors including the chairman and chief executive.

Mr Thomas, who owns just shy of 18 per cent of the fixed-line and mobile phone business, attacked PNC yesterday, saying it was "misleading" of it not to mention this development when it reported its half-year figures on Tuesday.

He wrote to the company on 8 November to order an extraordinary general meeting, proposing that the chairman Lord Stevens of Ludgate, the chief executive Ian Gray and three other directors step down from the company but that David Bradfield, the finance director, remain in place.

"I'm not criticising them [the directors]. They've done a good job turning the company around," Mr Thomas said. "My criticism is that it's the wrong time to sell the business."

PNC Telecom, which said pre-tax losses in the six months to 2 September had narrowed to £3.9m from £14m, in effect put itself up for sale by asking its broker, Seymour Pierce, to look at ways of "maximising shareholder value".

Mr Thomas is proposing that he and three others, Peter Scrancher, Colin Herniman and Jeffrey Pack, are appointed to the board instead. "It's daft to put it [the company] up for sale when it's in good shape," he said, adding he is "motivated and enthusiastic" and reckons the company is worth far more than its current £8.1m market value.

Mr Thomas, who claims he has the backing of private shareholders who speak for an extra 32 per cent of the business, said PNC has until 1 December to call a meeting which it must hold before the end of this year.

In its defence, PNC Telecom, which also said yesterday it planned to have its shares moved onto the Alternative Investment Market from a full listing, said it had 21 days from receiving the letter to notify shareholders. Furthermore, it said notice had not been properly served since the letter had been received by fax – a claim that was dismissed immediately by Mr Thomas' camp.