Bourguignon gets Eurotunnel top job
CHANNEL Tunnel operator Eurotunnel today moved to quell a rebellion by shareholders by nominating a former chief executive of Euro Disney as its new chairman.
Eurotunnel, which is seeking to restructure after racking up debts of £6.4bn, said Philippe Bourguignon had the ability to 'unite people around ambitious projects'.
The group confirmed the nomination ahead of a crunch meeting in Paris on 7 April when investors will vote on a rebel proposal to oust the entire board.
Disgruntled shareholders - led by maverick financier Nicolas Miguet - are angry about recent falls in the company's share price and want more French people elected to the board.
Eurotunnel said the appointment of Bourguignon, a Frenchman, as successor to English counterpart Charles Mackay would 'bring additional credibility to relations with industry partners and shareholders'.
If the bid by shareholders to unseat the board fails next month, then Bourguignon will be appointed as chairman of the board of the French company of the bi-national group.
He will then step up to become chairman of the joint board of Eurotunnel on 29 October following a six-month period to ensure continuity and stability.
His immediate task will be to find a long-term solution to Eurotunnel's debt mountain by addressing structural problems in the cross-Channel rail industry.
The turnaround strategy has been dubbed 'Project Galaxie' and includes slashing access rates for operators including Eurostar and freight carriers EWS and SNCF. Eurotunnel is also planning to set up its own freight service from Kent to mainland Europe.
Eurotunnel is hoping Bourguignon will repeat his previous success as chief executive of Euro Disney between 1993 and 1997. The 58-year-old is credited with restructuring the finances of the theme park near Paris and returning it to profit.
Mackay said: 'With the company facing a critical period, Mr Bourguignon's appointment will further strengthen the already very bi-national make-up of the board.
'He is a good communicator with excellent personal skills. He has the ability to unite people around ambitious projects, and to foster a company's international expansion and renown.'
