--Buechner, 47, is expected to return to work in the first half
of October
--Buechner joins a small band of senior executives who have
taken breaks from major companies after citing fatigue
--Shares close down 5.5%
By Doug Cameron
Akzo Nobel NV (AKZA.AE, AKZOY) said Tuesday its chief executive
will take several weeks of leave after being diagnosed with
"temporary fatigue," just five months after joining the Dutch
chemical and paint maker.
Ton Buechner, 47, is expected to return to work in the first
half of October, though the company said an investor meeting
scheduled for Oct. 22 had been postponed indefinitely, with Chief
Financial Officer Keith Nichols taking on additional
responsibilities in the CEO's absence.
Mr. Buechner joins a small band of senior executives who have
taken temporary or permanent breaks from major companies after
citing fatigue, notably Antonio Horta-Osorio, who departed last
November from the CEO slot at Lloyds Banking Group PLC (LLOY.LN,
LYG) just eight months after joining the U.K. company.
Mr. Buechner joined Akzo Nobel in April after heading Swiss
machinery maker Sulzer AG (SULZF, SUN.EB) for five years, and a
spokesman for the Dutch company said the executive had "taken on
too much work."
Akzo Nobel is the world's largest paints-and-coatings maker by
revenue, but like rivals it has been hit by the slowdown in the
global auto and construction markets, though second-quarter
earnings released in July beat analysts' expectations.
The upcoming investor meeting had been keenly anticipated by
investors as Mr. Buechner's first opportunity to detail new
cost-saving plans, though he wasn't expected to announce any big
changes to a portfolio that includes domestic and industrial paints
and specialty chemicals.
The company has been wrestling with declining volume and relying
on higher prices to counter volatile raw-material costs, notably
for titanium dioxide, a paint pigment.
Akzo Nobel derives more than a third of its sales from Europe
and 20% from North America, employing 55,000 staff members in more
than 80 countries. Its shares closed down 5.5% at 46.16 euros ($60)
a share, declining from a 52-week high in the previous session.
"I was sad to learn about Ton's condition and we all look
forward to seeing him back in the office shortly," said Karel
Vuursteen, chairman of Akzo Nobel's supervisory board.
--Robert van den Oever contributed to this article.
Write to Doug Cameron at doug.cameron@dowjones.com
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