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Corus CEO quits on £458m loss
LONDON, England -- The chief executive of Corus resigned Friday after the steel giant announced a 2002 net loss of £458 million ($732 million). The Anglo-Dutch company's board accepted Tony Pedder's resignation "with immediate effect," and Chairman Sir Brian Moffat agreed to defer his planned retirement. "In the light of the company's performance, the board, including Mr. Pedder has concluded that a change of leadership is required," a company statement said. Last year's net loss of $458 million compared with a £419 net loss the previous year. Europe's second-biggest steel maker reiterated that its UK losses would lead to a consolidation of operations, but it gave no further details Friday on which plants might be closed. The company employs almost 26,000 staff in the UK and increased its share of the steel market to 52 percent despite the difficulties in the sector, PA said. Friday's news comes as Corus tries to secure fresh financing after a major asset sale fell through. On Thursday, an Amsterdam court upheld a veto by the firm's Dutch arm on the 750 million euros ($815 million) sale of some of its aluminium business in the Netherlands to France's Pechiney. "With the sale no longer proceeding, the group will need to look afresh for finance from equity and debt providers, and from the sale of non-core assets," the Corus statement said. Analysts said Pedder's departure was no surprise. "As far as his position was concerned, it would have been exceptionally difficult, given that he was behind the (failed) sale of the aluminium business," BNP Paribas analyst Charles Kernot told Reuters. In a conference call, Moffat said the company was not planning to reverse the 1999 merger between British Steel and Hoogovens which created Corus, nor was the company looking at liquidation. He said he was confident that the firm would be able to agree new bank facilities, Reuters reported. One of the world's top 10 steel makers, Corus confirmed an underlying operating loss before exceptionals of £393 million for the year to December 28, 2002, compared with a £377 million loss the previous year. The firm will again not pay a dividend. Shares were up 0.45 pence at 4.4 pence, valuing the company at around £134 million.
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