Fall of Soitec after the announcement of a change of CEO | Photo credits: Soitec media library
PARIS, Jan 20 (Reuters) – Soitec stock fell sharply on Thursday morning on the Paris Stock Exchange after the announcement of the appointment of Pierre Barnabé to the general management of the manufacturer of semiconductor materials where he will replace Paul Boudre.
The title fell 13.90% to 176.5 euros at 10:43 a.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. (Written by Laetitia Volga, edited by Jean-Michel Bélot)