AkzoNobel CEO's medical leave delays strategy update
* CEO takes medical leave, due back in first half of Oct* Strategic update for investors postponed indefinitely* Q3 results still due on Oct. 18* Shares fall as much as 5.7 pct
AMSTERDAM - The head of AkzoNobel, the world's largest paints maker, is on medical leavedue to fatigue and has indefinitely postponed a strategy updatewhich analysts had hoped would bolster the Dutch group in atough economic climate.
Shares in the firm dropped nearly 6 percent in early Tuesdaytrading after the maker of Dulux paints said the 47-year-old TonBüchner, who took over as chief executive in April, would be offwork until around the first half of October.
"As AkzoNobel is in a critical phase with its restructuringprogram and setting a new strategy, the absence of the CEO isclearly not good news," Rabobank analysts wrote in a researchnote.
"As Ton Büchner previously was the CEO of (Swiss machinerymaker) Sulzer, and as such is accustomed to the amount of workneeded as a CEO of a listed company, we are a bit surprised bythis news," it said, adding this confirmed how much work neededto be done at the firm.
AkzoNobel warned of a tough economic environment and highcosts for raw materials alongside its second-quarter results inJuly and said it would announce a strategic update in October atthe time of the third-quarter earnings.
That update has been postponed indefinitely, althoughresults will still be released on that date, it said.
"This decision has been made based on medical advicefollowing Ton Büchner being diagnosed with temporary fatigue,"the company said in a statement.
Chief financial officer Keith Nichols will be the firstpoint of contact on the executive committee during Büchner'sabsence.
Büchner has travelled frequently since joining AkzoNobel inJanuary, visiting its operations. He has been off work for abouttwo weeks already, the company said.
At 0815 GMT, AkzoNobel shares were down 4.7 percent at46.555 euros, the biggest fall by a European blue-chip stock.