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BL Premium reports that analysts say that Peter Moyo’s reinstatement as Old Mutual CEO and his legal challenge to have the insurer’s board of directors – including chair Trevor Manuel – declared delinquent could wreak havoc on its share price.
Soon after the news on Tuesday, Old Mutual’s share price fell 5.45% to R19.26, its biggest one-day drop in more than four months, to the lowest level seen since its split into four separate businesses in June 2018. Analysts say this volatility could continue as Moyo returns to what is expected to be an increasingly hostile work environment. The Johannesburg High Court ordered the insurer to temporarily reinstate Moyo as his axing was unlawful. Old Mutual fired Moyo in June‚ citing a breakdown in trust between him and the board due to a conflict of interest linked to NMT‚ co-founded by Moyo and in which Old Mutual has shares. Karl Gevers of Benguela Global Fund Managers said it would make the atmosphere tense, which might divert everybody’s attention from daily operations. The insurer could ill afford that, given how competitive the sector was, Gevers said. Old Mutual’s lawyer Ngwako Maenetje told the court earlier in July that reinstatement was not an option because there was “no mutual respect left” between the two parties. Moyo said he was not fazed by the animosity between him and the board.
- Read the full original of the above report by Londiwe Buthelezi at BusinessLive (paywall access only)
Get other news reports at the SA Labour News home page