STOCKS NEWS EUROPE-Connaught falls sharply; CEO resigns

Shares in Connaught CNT.L are the biggest FTSE midcap .FTMC fallers, shedding more than 9 percent to hit a near 10-month low, after the support services group announces the resignation of its CEO Mark Davies.

Connaught says current executive chairman Mark Tincknell will become CEO on a permanent basis from Feb. 1 2010. [ID:nRSc3154Ga]

“Whilst some investors may be disappointed at this news, given what Mark Davies has achieved at Connaught, we recognise that with the excellent operational controls and infrastructure in place it may be time for a more ‘market facing CEO’ to drive and sustain returns,” KBC Peel Hunt says in a note.

The broker, which repeats its “buy” rating on the stock, says Tincknell has been instrumental in driving the group’s strategy and developing key client relationships.

Altium Securities also repeats its “buy” rating on the firm.

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