The share price of Rogers Communications Inc. fell at the start of trading on Wednesday, after the telecom announced that it had removed chief executive Joe Natale and named Tony Staffieri as interim CEO.
The price fell 1.5 per cent, pushing the stock below the $60 threshold again – and resuming a bout of volatility that began last month during a power struggle led by chair Edward Rogers.
However, at least one analyst was quick to note that the executive leadership change comes with a positive angle, in that it removes a key element of leadership uncertainty that has been weighing on the company.
“This announcement should put an end to all the leadership uncertainties at the most senior level over the past month and a half. We believe Tony Staffieri provides Rogers with continuity and focus on delivering operating and financial results,” Jeff Fan, an analyst at Bank of Nova Scotia, said in a note.
The share price of Shaw Communications Inc. also fell, by a more muted 0.5 per cent in early trading. Rogers has a deal to acquire Shaw in a $26-billion transaction that still requires regulatory approval.
Mr. Fan said he does not expect the leadership change will have any impact on the upcoming hearing by the Canadian Radio-television and Telecommunications Commission in regard to the Shaw deal.
“In our view, since the CRTC has already denied the hearing delay requests, there is no reason to revisit that again. We believe the CRTC review focuses on very specific broadcasting rules and a CEO change should not impact the CRTC decision,” the analyst said.
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