Anglo American confirms Parker as chairman

10th Jul 2009 07:13

Anglo American has confirmed the appointment of Sir John Parker as chairman from the end of the month succeeding Sir Mark Moody-Stuart who is to retire after seven years as chairman. Sir John is chairman of National Grid and is also joint chairman of the Mondi Group and a former chair of the Court of the Bank of England. He will step down from Mondi by the end of the year or sooner if a successor is found.Parker's priority will be to co-ordinate Anglo's defences against the merger moves being made by rival Xstrata. Xstrata has already had a proposal for a nil-premium merger rejected by Anglo shareholders, but if raises its offer and includes some cash the mood may be different. Market talk yesterday suggested Anglo's shareholders would consider an offer at between 30%-50% above the current share price of 1,645p and market value of £21.7bn.Anglo's chief executive Cynthia Carroll has also been fiercely criticised by some shareholders, especially in South Africa, for her decision to cut the dividend earlier this year, but Parker today came out in support of the embattled Anglo boss."I look forward to working with the board and the excellent management team led by Cynthia Carroll," he said.Analysts in London welcomed the appointment. Analyst Tim Huff at RBS told reporters that the appointment was a "huge positive strategically".The reaction in South Africa may be less enthusiastic. Sir John was favourite to take over from Mark Moody-Stuart last year but his appointment was reportedly blocked by South African directors. Reports in South Africa still suggest some investors want a home-grown boss.