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Shareholders want Eyles on QMH board

DISGRUNTLED shareholders of Queens Moat Houses (QMH) are hoping to get former Norfolk Capital Hotels boss Peter Eyles elected to the company's board in the New Year.

Mr Eyles, who only last week revealed plans for his own hotel and leisure complex at Silverstone, was managing director of Norfolk Capital until its takeover by QMH in 1990.

The QMH Shareholders Action Group - which claims to speak for 10% of shares - is also proposing a £300m rights issue to raise funds from existing shareholders.

It claims the board's restructuring proposals, which are expected to be unveiled this week ahead of next week's AGM, will include a debt-for-equity swap that would "dilute shareholders' interests to an unacceptable level".

Denis Woodhams, who heads the action group, said: "A recovery plan based principally on a rights issue would not only be fairer to shareholders, but would also satisfy bankers."