Part of ConvaTec’s (CTEC) much-needed turnaround plan appears to include new blood at the top. The company has announced Karim Bitar – formerly chief executive at animal health group Genus (GNS) – as its new boss, while the group’s current chairman Sir Christopher Gent has announced his intention to retire. He won’t seek re-election at the annual meeting in May. Mr Bitar will join the group at the end of September.
Interim chief Rick Anderson has also agreed to temporarily serve as executive chairman, while deputy chairman Steve Holliday has resigned with effect from the end of March.
Perhaps ConvaTec hopes Mr Bitar will replicate his success at Genus, where prioritising research and development helped generate a 150 per cent increase in shareholder returns. Interim chief Rick Anderson has also agreed to temporarily serve as executive chairman, while deputy chairman Steve Holliday has resigned with effect from the end of March.
Rumours are also circulating about a possible takeover. Dagens Industri – a Stockholm-based newspaper – named Swedish private equity firm EQT as a potential buyer. Despite the inevitable bounce this prompted in ConvaTec shares, the stock is still down by nearly a third over the past 12 months, making it more vulnerable to advances.
