January 24, 2008

Australia's AAC drops in Sydney trading, on management changes

Australian Agricultural Co. (AAC), Australia's largest cattle rancher, dropped in Sydney trading and has posted a three-day decline following the resignation of its Chief Executive Officer Don Mackay.

The company on January 22 said Mackay would leave after the board sought management changes.

Plans by Futuris Corp. to sell its 42-percent stake in the rancher are stirring concerns and have pushed AAC lower, said ABN Amro Morgans Ltd. analyst Belinda Moore.

AAC fell as much as 25 cents, or 8.5 percent, to AUD2.70 (US$2.36) on the Australian Stock Exchange and was at AUD2.77 (US$2.4) at 11:08 a.m. Sydney time.

The company shares have fallen 21 percent since January 22, the biggest three-day drop since the stock started trading on the exchange in August, 2001.

Chairman Nick Burton Taylor will serve as interim CEO while the board uses a search firm to help find a replacement, AAC announced on January 22.

Meanwhile, Futuris appointed Citigroup Inc. and Caliburn Partnership Pty to conduct a global sale of its shares in AAC, the company said on October 23.