Condolences to longs.
quote.bloomberg.com
Navigant CEO Resigns; Committee to Review Loans (Update1)
Chicago, Nov. 22 (Bloomberg) -- Navigant Consulting Inc., the largest U.S. utility consultant, said Robert Maher resigned as chairman, chief executive and president as the company reviews $17 million in loans it made to Maher and other officers.
Mitchell Saranow, a board member since 1996, and Navigant executives John Reed and Carl Spetzler will share the chief executive job. Navigant appointed Saranow as chairman, Reed as vice chairman and Spetzler as president.
Navigant also formed a committee to review a $10 million loan made to Maher in the third quarter and loans totaling $7 million to General Counsel Charles Demirjian, Chief Administrative Officer Barry Cain and Chief Financial Officer Timothy Kingsbury. Navigant fired Demirjian and Stephen Denari, vice president of corporate development.
Navigant shares have fallen 52 percent from a 52-week high of 54 1/4 on Sept. 21 amid questions about the loans, Navigant's announcement that it won't be acquired, and a published report that said the Chicago-based company overstated its growth rate.
''We are moving from the entrepreneurial era to a new era that requires a different kind of management,'' the co-chief executives said in a statement.
Trading in Navigant shares was delayed today. They rose 1/8 to 26 on Friday.
In addition to reviewing the loans, the special committee made up of Saranow and two outside directors will try to determine if Navigant's practice of recording acquisitions using the ''pooling of interests'' accounting method was correct, or whether they should be reclassified as purchases.
Navigant said any reclassification wouldn't have a ''material'' impact on 1999 earnings, though it may affect earlier quarters. Navigant said it expects to finish the review next month and may have to amend its quarterly report.
Maher took the loan for a real-estate transaction because he couldn't sell Navigant stock during its merger talks, Navigant has said. Maher repaid the loan by returning 493,000 Navigant shares at $20.50 each, the company said today.
Maher and Cain resigned from the board. Reed and Spetzler were named board members. Navigant changed its name in July from Metzler Group Inc. |
