Shares in Babcock & Brown tumbled to a record low Thursday after the appointment of a new CEO failed to convince investors the company can be saved as it sells assets at a loss to reduce debt, reports Bloomberg. The Australian investment and infrastructure manager said chief financial officer Michael Larkin will replace Phil Green as CEO, while Jim Babcock, who founded the company in 1977, will be replaced as executive chairman by his deputy Elizabeth Nosworthy. Babcock’s shares tumbled 33% to A$2.36 in Sydney after it reported its first profit decline. Net first-half income fell 24% to A$151m ($132m), while Babock’s debt of A$11.4bn was almost five times shareholders’ funds. The FT earlier reported that investors punished shares of Babcock’s satellite groups on Wednesday, following the parent company’s decision to suspend share-trading ahead of full-year results.

This entry was posted by Gwen Robinson on Thursday, August 21st, 2008 at 5:29 and is filed under Capital markets, People. Tagged with babcock & brown. Edit this entry.