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Gemplus: Shareholders Not Convinced
Source:www.cards-worldwide.com, Source date:
The shake-up of top management appears to have done little to reassure investors who claim the future of the French smart card manufacturer remains uncertain.
At 1037 GMT Gemplus shares were down 1.05 percent at 2.83 euros, underperforming a firmer tech sector.
Gemplus, which issued four profit warnings so far this year, said on Wednesday that it was replacing both its chief executive and chairman.
Gemplus was floated last December at six euros and has lost 70 percent of its value since then. It was hit by flagging demand for cellphones, which make up half its revenues, and bad publicity over tensions between its management and employees after a restructuring plan.
Gemplus said on Wednesday that Antonio Perez resigned as CEO and director and director Ronald Mackintosh was named to replace him, effective immediately.
Marc Lassus, founder and one of the largest shareholders of the firm, agreed to step down as chairman effective January 10, 2002. He will remain a director.
The board elected Hasso Von Falkenhausen to replace Lassus as chairman. Both Von Falkenhausen and MacIntosh will serve only temporarily as Gemplus said it will hire an international search firm to find a permanent CEO and chairman.
