THE City has given a lukewarm response to the appointment of Vernon Sankey as non-executive chairman of Thomson Travel Group.
The market leader’s share price fell one and three quarter pence to 95p after the news was announced to the City. It stood at 84p as Travel Weekly went to press, fuelling more speculation the company could be subject to a takeover bid.
Sankey joins Thomson after 28 years at household goods company Reckitt Benckiser, the last seven spent as chief executive. He will replace Michael Brown who announced his intention to quit last November.
While Sankey is credited with transforming Reckitt into an international company, he left last February by mutual consent in the wake of a profits warning and a tumbling share price.
Thomson itself issued three profits warnings during a turbulent 1999.
Analysts were unimpressed with the appointment. One said: “Charles Gurassa came in as chief executive from British Airways, which is in a mess and will lose around £200m this year.
“Now Sankey has arrived from Reckitt, which has also performed badly. Neither are tour operators which is what Thomson needed to instill confidence.”
However, another analyst said: “A lot will depend on the strategy they set out at the company’s results in March.”
Sankey will work one to two days a week for his £150,000 salary. A Thomson spokesman said: “Vernon has excellent marketing and management skills and a background in international business.”
Sankey intends to buy shares in Thomson at the end of its closed period.
Gurassa is keen to reduce the number of board members and is expected to make cuts and further changes at its results announcement next month.