ZURICH, Switzerland (Reuters) — Syngenta’s chief executive officer is stepping down two months after the company spurned a $47 billion takeover approach from Monsanto.
Mike Mack will quit at the end of the month, and chief financial officer John Ramsay will take charge on an interim basis.
Shares were up six percent following last week’s announcement, and some traders said the change could rekindle bid speculation.
However, a source close to Syngenta said Ramsay is not a member of the board and is unlikely to become one, which means the board’s attitude toward a takeover was unlikely to change.
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A Monsanto spokesperson said the company did not comment on the leadership changes at other companies and was focused on improving growth opportunities in its own business.
Syngenta, the world’s largest maker of pesticides, has been under pressure to boost shareholder returns after rejecting the possible deal with Monsanto.
A group of rebel Syngenta shareholders said the change could benefit the company.
“We welcome the decision because it shows that somebody takes responsibility,” said Folke Rauscher, managing director of a group calling itself the Alliance of Critical Syngenta-Shareholders.
“It opens up new perspectives in terms of exploiting all options to fully get Syngenta’s potential back,” Rauscher said.
The group said it has the support of more than 80 Syngenta shareholders since it was set up earlier this month.
The company’s troubles were compounded last week when it reported third quarter sales that fell more than expected.
“I believe that this is an appropriate time for the company to benefit from the perspectives of a new leader,” Mack said in a statement.
He called current market conditions challenging.
“I wish John (Ramsay) every success in his new role,” added Mack, an American who had been in the top job since 2008.
Analysts linked Mack’s departure to Monsanto’s spurned takeover bid as well as disappointing third quarter earnings and said the company should hire externally.
“In our view, it would be best to appoint an industry insider — but outside person — with a fresh viewpoint on Syngenta,” Kepler Cheuvreux wrote in a note.
“We do not believe that just because of Mike Mack’s decision to retire from Syngenta, Monsanto will develop novel short-term ambitions on Syngenta again.”
Syngenta’s shares dropped 23 percent on the day that Monsanto announced it was abandoning its pursuit of the Swiss company, and in the last month the shares have traded at $394 to $441, down from $548 in August.
The Monsanto approach equated to a price of around $593 per Syngenta share.
