Fall of Soitec after the announcement of a change of CEO | Photo credits: Soitec
(Updated with the letter from Soitec management to the board of directors)
PARIS, Jan 20 (Reuters) – Soitec shares fell sharply on Thursday after the announcement of the appointment of Pierre Barnabé to the general management of the semiconductor materials manufacturer where he will replace Paul Boudre.
On the Paris Stock Exchange, the title fell 20.10% to 165.51 euros at 4:20 p.m., at the bottom of the Stoxx 600. It is heading for its worst daily performance in nearly two years.
Pierre Barnabé currently holds the position of Director of the Manufacturing market and the Big Data and Cybersecurity division of the Atos IT services group.
He will join Soitec on May 1 and take up his duties in July at the end of the ordinary general meeting, the group said in a press release on Wednesday.
“I am very enthusiastic and proud to join and lead Soitec. I am also aware of the responsibility that falls to me (..) The semiconductor market is very dynamic and full of opportunities”, declared Pierre Barnabé.
Credit Suisse analysts, who salute in a note the management of Paul Boudre, anticipated a negative reaction from the market.
“Paul Boudre has set the bar very high for his succession by demonstrating solid competence in improving Soitec’s growth and profitability prospects. Given this requirement, (the announcement of his replacement) may, initially time, be viewed negatively,” CS analysts commented.
In a letter addressed to the board of directors – consulted by Reuters – the executive committee of Soitec considers the appointment of a new general manager “incomprehensible” in view of the “industrial successes” won by Paul Boudre over the past five years. (Written by Laetitia Volga and Claude Chendjou, edited by Jean-Michel Bélot)