colorado calls in advisers

Colorado calls in advisers
Liam Walsh
16jun06

UPMARKET clothes seller Colorado has lost its ambitious chief and brought in specialist advisers, raising speculation it may be trying to boost its share price in case a predator emerges.

Acting chief executive Eddie MacDonald is slated to step down in September and work as chief financial officer with gaming giant Tabcorp at its Australian Business division.

Yesterday's announcement came a month after Mr MacDonald declared he wanted the permanent spot in Colorado's top job.

That spot became available when Rowan Webb left as CEO in March - the same time Colorado announced profit downgrades, although he described this as a co-incidence.

Colorado said it had a short-list of potential CEOs and expected to make an announcement soon.

Tolhurst Noall analyst Marcus Padley wrote Mr Macdonald's move came "after seemingly missing out on the top job".

But Mr MacDonald rejected such a notion. "It's a fantastic job at Tabcorp," he said.

It also offered a definite path as the board was still deciding about Colorado's CEO, he said.

"I think it's (Colorado) got a very bright future," he said.

Colorado's share price rose 1 to $3.31 yesterday. It was trading at $5.01 in August last year.

The company's board has also brought in advisers Gresham Advisory Partners.

Gresham executive director Craig Jensz said the share price was currently depressed and his group would be looking to get Colorado's "fundamental value . . . better appreciated by the equity market".

Colorado, which owns Mathers and Diana Ferrari brands, posted a full-year 19 per cent fall in profit to $35.6 million.

http://www.heraldsun.news.com.au/common/story_page/0,5478,19483347%255E664,00.html