asciano in board overhaul

Asciano in board overhaul

SCOTT ROCHFORT

ASCIANO Group has announced a major overhaul of its board, with the former chief executive of explosives maker Orica, Malcolm Broomhead, replacing Tim Poole as the embattled ports and rail operator's chairman.

Confirming a report in BusinessDay on Thursday, Asciano announced yesterday it would seek the endorsement of Mr Broomhead as its chairman at its annual meeting on October 23 along with two other high-profile non-executive directors.

Asciano said the two other non-executives it planned to appoint were the recently retired deputy chief executive of ANZ, Bob Edgar, and former Crown Limited and PBL executive Geoff Kleeman.

The move is believed to have been in response to pressure from some institutional investors and an attempt by the company to repair its battered image among investors.

Some shareholders saw Mr Poole, 40, as too inexperienced to lead the group out of its troubles.

Since listing, the company has made major strategic blunders, including its ill-fated takeover play for Brambles in which it lost more than $100 million.

Asciano shares have slumped about 80 per cent and diluted four times after a recent $2.3 billion capital raising.

But yesterday's board changes have raised hopes Asciano has turned the corner. It has also taken pressure off managing director Mark Rowsthorn to resign.

''It's good to see them put some balls into the board and clear the decks there,'' said transport industry veteran Peter Gunn, who recently lifted his 2.34 per cent stake by buying his full entitlement in the raising and buying more shares.

He welcomed the appointment of three ''hardened'' business people. Asciano shares rose 9¢ to $1.60 on the news.

''I think it is a great business in the long term,'' Mr Gunn said. ''As soon as the market picks up, they are such a high fixed-cost business, their shares are going to go through the roof.''

http://www.businessday.com.au/business/asciano-in-board-overhaul-20090904-fbf7.html