The City has raised concern over Morrisons’ ability to integrate the Safeway business after it announced that Safeway’s operations director Lawrence Christensen and marketing and trading director Jack Sinclair would not join the new board once the companies had merged.
Christensen and Sinclair were invited by Morrisons to join the new board in its original takeover offer in January 2002 and again in its new offer last month. In January 2002, Sir Ken Morrison said Christensen and Sinclair represented two areas vital to the success of the takeover - trading and logistics.
However, Christensen will leave when his contract expires on June 18 and Sinclair will depart along with the rest of the Safeway board when the takeover is complete on March 8 in what is believed to be an amicable, mutual decision.
Rhys Williams, analyst at Seymour Pierce, said it was disappointing the two Safeway directors would not be joining the board, but he was confident Morrisons could successfully integrate Safeway because it had good management experience.
However, Fitch Ratings senior analyst Jonathan Pitkänen believed their departures were a major setback. “We took confidence in the fact they would come to Morrisons,” he said, adding that the integration would now be a more risky proposition. Shareholders of both companies will vote on the deal on February 11. Subject to court approval, it should be finalised on March 8.
Meanwhile, Safeway surprised the City by releasing a third-quarter trading statement after saying earlier that it would not announce its figures. Like-for-like sales for the 12 weeks to January 3 were down 4.1% compared with a drop of 2.5% in the six months to October 11.
Christensen and Sinclair were invited by Morrisons to join the new board in its original takeover offer in January 2002 and again in its new offer last month. In January 2002, Sir Ken Morrison said Christensen and Sinclair represented two areas vital to the success of the takeover - trading and logistics.
However, Christensen will leave when his contract expires on June 18 and Sinclair will depart along with the rest of the Safeway board when the takeover is complete on March 8 in what is believed to be an amicable, mutual decision.
Rhys Williams, analyst at Seymour Pierce, said it was disappointing the two Safeway directors would not be joining the board, but he was confident Morrisons could successfully integrate Safeway because it had good management experience.
However, Fitch Ratings senior analyst Jonathan Pitkänen believed their departures were a major setback. “We took confidence in the fact they would come to Morrisons,” he said, adding that the integration would now be a more risky proposition. Shareholders of both companies will vote on the deal on February 11. Subject to court approval, it should be finalised on March 8.
Meanwhile, Safeway surprised the City by releasing a third-quarter trading statement after saying earlier that it would not announce its figures. Like-for-like sales for the 12 weeks to January 3 were down 4.1% compared with a drop of 2.5% in the six months to October 11.
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