Biz People: Suncorp Chief to Pick Executives

John Mulcahy (above), chief executive officer of Suncorp-Metway Ltd, will choose an executive team and proceed with a share sale after Promina Group Ltd investors yesterday approved a A$7.5 billion ($5.9 billion) takeover bid.

Promina shareholders voted in favor of the offer at a meeting in Sydney. The acquisition by Brisbane-based Suncorp, which will become Australia's second-largest car and home insurer, is the biggest takeover in the nation's financial services industry in seven years.

Mulcahy is buying Promina, the nation's second-largest car and home insurer before the takeover, to add brands including auto insurer AAMI to help revive sales, which slowed last year. He said on February 20 it was too early to discuss the composition of an executive team for the combined group, though Promina management may be represented in some lines of insurance. Shares in Promina fell 27 cents, or 3.8 percent, to A$6.91 in Sydney yesterday.

(c) 2007 China Daily; North American ed.. Provided by ProQuest Information and Learning. All rights Reserved.