Vodafone Board Ructions In Focus As Bamford Exits
LONDON -(Dow Jones)- Vodafone Group, Wednesday ousted chief marketing officer and board member Peter Bamford, the latest high-profile departure amid ongoing speculation of boardroom ructions.
Bamford, who has been a board member since 1998, will leave April 1, the company said in a statement. His exit follows the departure of deputy chief executive Julian Horn-Smith and former finance director Ken Hydon, who both left over the last 12 months.
Reports have indicated rows between Chief Executive Arun Sarin and other board members and, most notably, life president Chris Gent. Gent was credited with transforming Vodafone into one of the world's largest mobile phone operators from a small subsidiary of aerospace and defense company Racal. Given his tenure on the board, Bamford is considered a member of the Gent old guard, analysts said.
Newspapers have reported that Gent had opposed Sarin's reelection as CEO and the election of finance director Andy Halford to the role, prior to the company's annual general meeting last summer and that former Vodafone directors have been waging a whispering campaign against Sarin. Vodafone has declined to comment on those reports.
However, a Vodafone spokesman told Dow Jones Newswires that Bamford's departure was a consequence of an overall review of the company's group marketing function. The spokesman added that Wednesday's announcement is not linked to the recent press reports and was a result of the marketing review, which is ongoing.
The spokesman said Frank Rovekamp, global consumer marketing director, will assume Bamford's responsibilities until a decision is taken over his permanent replacement. He said that Bamford has been given notice in accordance with his contract.
Bamford's exit follows a tumultuous week for Vodafone, which unveiled a writedown of as much as GBP28 billion due to more cautious mid-term growth expectations and said it is in talks to sell its struggling Japanese division. The potential exit from Japan kick-started a share rally but also threw the company's strategy into the spotlight.
ING Financial Markets analyst Damien Chew, who has a buy rating on the stock, said Bamford's exit bodes well for CEO Sarin whose future at the company has been called into question since it unveiled disappointing guidance last November. Chew said Sarin appears to have the board's support suggesting "he will be in the job for a while yet."
Another analyst, speaking on the condition of anonymity, said Bamford's departure continues the clearout of Vodafone's old guard. He noted that with longtime Chairman Lord MacLaurin leaving in July to be replaced by HSBC Holdings PLC (HBC) Chairman John Bond, further boardroom movements could be on the horizon.
At 1349 GMT, Vodafone shares were 0.2%, or 0.25 pence, lower at 123.5 pence in an overall declining market.
Company Web site: http://www.vodafone.com
-By Nic Fildes, Dow Jones Newswires; 44-20-7842-9264; nicolas.fildes@dowjones.com
(END) Dow Jones Newswires "
Posted to the site on 8th March 2006
