* Former Cable & Wireless Worldwide CEO takes over
* Chairman says company has shareholder backing
* Shares down 11 percent
By Paul Sandle and Neil Maidment
LONDON, Jan 28 (Reuters) - British group Premier Foods said Chief Executive Michael Clarke had resigned, after18 months trying to streamline the debt-laden maker of Hovisbread, a surprise departure that hit its shares on concern overits turnaround plan.
Clarke sold brands including Sarson's vinegar and Branstonpickle to bring down 1.3 billion pounds ($2 billion) ofborrowing built up before the financial crisis, and initiated ashake-up at the company's bread division.
He is replaced by Gavin Darby, most recently CEO of Cableand Wireless Worldwide, but has agreed to be available until themiddle of the year to ensure a smooth handover.
Analysts said they were concerned Clarke's departure couldderail progress at Premier Foods, which has been trying to focuson core brands like Mr. Kipling cakes and Sharwood's curryproducts to boost revenue and make its debts more manageable.
As well as selling off chunks of the business, the groupsecured a debt refinancing last year and in November cut 900jobs at its bread unit, which accounts for nearly 40 percent ofrevenue. The division had lost a 75 million pounds contract,reported to be with the Co-Op.
"We see the surprise change of leadership as unhelpful toPremier's stability and organic growth prospects," said MartinDeboo at Investec. "With its financial restructuring complete,we think that consistency and longevity of leadership was goingto be critical to its prosperity."
Shares in the firm, which have risen 20 percent in the last12 months as concerns over the company's debts receded, weredown 13 percent at 105 pence at 1327 GMT.
Premier Chairman David Beever told reporters the managementswitch would not herald a change in the group's strategy andadded that despite Monday's share price fall, the firm hadreceived support concerning Darby's arrival.
"Present indication is that all change is always frighteningto investors," Beever said, "(but) the meeting with analyststhis morning was extremely satisfactory and we've had somesupportive comments from some of our big investors includingWarburg Pincus (its top shareholder)."
Outgoing boss Clarke had indicated over Christmas that hewas considering leaving, Beever said. He said reports thatClarke's exit was due to a pay dispute were "nonsense".
Premier said Clarke, who steps down with immediate effect,wanted to pursue other business opportunities, although it didnot believe he yet had a job to go to.
Darby, who engineered the sale of Cable & Wireless Worldwideto Vodafone last year, will take over on Feb. 4.
He spent a decade in the telecoms industry after working atCoca-Cola Company for 15 years in various roles in Britain.
Darby, who said his favourite Premier brand was Sharwood's,has agreed to invest a "significant sum" of his own money inPremier shares, which he said would be matched by Beever if hewas still at the company in three years time.