MUI intervention is no reason to resign, says Regal's Holmes

Charles Holmes, managing director of Regal Hotels, has denied he is close to resigning over the impending takeover by London Vista, a subsidiary of Regal's Malaysian shareholder.

Speculation over Holmes's departure has mounted following the appointment by Malaysian United Industries (MUI) last month of Peter Kirschner as group operations director.

One source close to the company claimed that Kirschner had been appointed against Holmes's wishes.

"He [Holmes] may feel that after the takeover his position in the company is no longer tenable," the source said.

But Holmes, who took over as managing director in November, said that he had no plans to leave, nor did he have any objections to the new appointment.

"I have a big job to do here and resigning does not figure anywhere," he said.

"Peter Kirschner has come to help the management team. MUI made us aware that he was there and we said we would welcome him," he added.

Independent board members, who include Holmes and finance director Jim Stokes, have urged shareholders to reject the current offer, which values the company at £75.7m. They say the offer is too low.

The deadline for shareholders to make their decision has been lifted by the Stock Exchange. It is understood that no firm deadline can be set until technicalities related to shareholdings have been clarified.

But despite their objections over the price offered, both Holmes and Stokes claim they have no problems with MUI taking control of the company.

"We are not against MUI. It could be a good thing," said Stokes.

Holmes said that the main advantages to Regal, which has 109 midmarket hotels, would be greater investment and possible overseas expansion.

by Christina Golding