Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

UPDATE 2-Micro Focus shares tumble after shock CEO exit

Published 09/09/2009, 05:13 AM
Updated 09/09/2009, 05:18 AM

* CEO to step down for personal reasons

* Will work with board to ensure smooth transition

* Shares fall as much as 15 percent (Adds analyst comment, share price, details on trading)

By Ben Deighton

LONDON, Sept 9 (Reuters) - British software group Micro Focus International announced on Wednesday the surprise resignation of its chief executive, sending its shares down by as much as 15 percent.

The company, which develops software for businesses, said its chief executive Stephen Kelly is stepping down for personal reasons, but would work with the board to ensure a smooth transition.

Analyst Tintin Stormont at Singer Capital Markets said the shares were down because Kelly had led the company through an "excellent" turnaround.

"Even if the company is more than one person, it's unsurprising that the market has reacted negatively," she said.

Stormont added that the market would be unsettled as Kelly had stepped down before the full integration of the company's recent acquisitions, Borland and assets from Compuware.

Micro Focus also said in a statement on Wednesday that trading had been in line with its expectations since its last management statement on August 12.

At 0844 GMT shares in Micro Focus were down 11 percent to 344 pence, having earlier been as low as 327 pence. (Editing by Clara Ferreira-Marques and Jon Loades-Carter)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.