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UPDATE 4-Glencore Xstrata names ex-BP boss Hayward as chairman

Thu, 08th May 2014 20:09

* Hayward also CEO of London-listed oil firm Genel

* Hayward will eventually step down from Genel -source

* Genel declines to comment on whether Hayward will go (Adds statement from British Pension Funds Group asking membersto oppose Hayward's appointment)

By Silvia Antonioli and Karolin Schaps

LONDON, May 8 (Reuters) - Glencore Xstrata confirmed Tony Hayward as permanent chairman of the mining andcommodities trading group, sealing the former BP chiefexecutive's comeback from the worst offshore oil spill in U.S.history.

Hayward, who is also chief executive of London-listed oilcompany Genel Energy Plc, has been Glencore Xstrata'sinterim chairman since last May, when his predecessor Sir JohnBond was ousted by shareholders.

At the time, Glencore Xstrata said Hayward would return tohis role as a senior independent director once a chairman wasfound.

Other leading candidates for the role were former Vale boss Roger Agnelli and ex-BG CEO FrankChapman, sources said. The final decision was made afterconsultation with shareholders.

Hayward's confirmation as chairman of one of the world'slargest mining groups completes his return to the corporate bigleague after he was forced out of BP following the 2010Gulf of Mexico oil spill.

He was severely criticised for his handling of the disasterthat killed 11 people and left huge stretches of sea and coastfouled with oil.

"Tony Hayward's experience at BP, including resolving theTNK-BP dispute and his subsequent success at Genel mitigate thenegatives that surrounded his departure from BP," Nomuraanalysts said in a note to clients, referring to BP's then Russian joint venture.

He is expected to eventually step down as chief executive ofGenel, the oil and gas explorer he has invested in alongsideBritish-born financier Nat Rothschild, a source close to thematter said.

Genel, which focuses on producing oil in the autonomousIraqi region of Kurdistan, declined to comment on whetherHayward would leave.

"Tony Hayward is and continues to be CEO of Genel Energy andwill continue to do both roles, as he has done successfully forthe past 12 months," a Genel spokesman said in a statement.

One media report on Wednesday said Hayward would leave Genelafter a successor has been found and a handover period allowedto take place, while another said Hayward was expected to leavewithin a year.

"If he does end up leaving, we would see this as a negativefor Genel. Nevertheless the fundamentals of our Genel investmentcase ... remain intact," Arden Partners analyst Daniel Slatersaid.

After leaving BP, Hayward co-founded Vallares Plc withRothschild and became chief executive of Genel Energy Plc in2011 after the merger of Vallares and Turkey's Genel EnergyInternational Limited.

In his permanent role at Glencore Xstrata, Hayward couldhelp the company with new acquisitions in the oil sector.

"Oil seems to be a growing arm of the Glencore business andif they want to push and expand a bit more Tony's expertise cancertainly help with that," Investec analyst Marc Elliott said.

Meanwhile, a group of British public sector pension fundshas opposed Hayward's appointment and asked its members to voteagainst him in protest at the company's failure to set targetsfor female representation on its board.

Glencore defended its position and said it was searching forsuitable women board members.

"Glencore values and promotes diversity across its business.The appointment of a female board member is a significantconsideration, and our nominations committee is working toidentify appropriate female candidates," a Glencore officialsaid in a statement.

Glencore expanded its oil and gas operations with the 800million pound ($1.4 billion) acquisition of Chad-focused energycompany Caracal Energy last month. ($1 = 0.5894 British Pounds) (Additional reporting by Alex Lawler and Paul Sandle and TasimZahid in Bangalore; Editing by Erica Billingham)

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Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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