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Top-level departures fuel rumours at M&C

Samantha McClary
Friday 23 January 2004 16:22
The departure of two of Millennium & Copthorne's (M&C) top-level directors has led to resurrected rumours of a move to private ownership for the hotel group.

Chief executive John Wilson announced last week he would be retiring in March after six years with M&C.

His announcement was coupled with that of finance director David Thomas, who has resigned to become group finance director at video game retailer Game Group.

While Wilson's retirement was widely anticipated, Thomas's resignation and move to a company with a market capitalisation just a quarter of the size of M&C has shocked some.

Peter Joseph, an analyst at KBC Peel Hunt, said there could be several reasons for Thomas's unexpected departure, including a fear that majority shareholder and chairman Kwek Leng Beng could take the company private.

There was also speculation that Thomas might have gone after Wilson's job and not got it before deciding to leave M&C.

The timing of the announcement - and the fact that the company did not name a new chief executive - has also unnerved analysts.

"When no new chief executive is named, it spooks people," Joseph said. "We don't know what is going to happen."

While M&C appoints its new chief executive, Tony Potter, chief operating officer, and executive director Wong Hong Ren will head up the company. Potter and former Queens Moat Houses directors Andrew Coppel and Stuart Metcalfe have all been mooted as replacements for Wilson.

A Far Eastern individual is thought most likely to take over Thomas's role.

M&C's announcement comes just a month before it is scheduled to publish its full-year results. Although the group said results would be in line with expectations, analysts are predicting pre-tax profits of between £15m and £20m, compared with £60m in 2002.

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