Gillette said yesterday that billionaire investor Mr Warren Buffett would leave its board next year after more than 14 years as a director, saying Mr Buffett's own business demanded too much of his time.
Shares of the razor and battery maker fell 44 cents to $27.68 in early trading on the New York Stock Exchange yesterday.
"It certainly is a disappointment," said Mr William Steele, consumer products analyst at Banc of America Securities.
"To lose somebody like Warren Buffett from your board is not a positive, it's a negative."
Mr Buffett has been known for having a strong hand in companies of which he is a director.
As chairman of Gillette's executive committee, Mr Buffett reportedly had a major role in the ousting of then-chairman and chief executive Mr Michael Hawley in 2000 after more than two years of financial disappointments. He also had a hand in choosing Mr James Kilts to lead the company last year.
Mr Kilts, who has led a turnaround of the company in the past several quarters, said he would continue to seek Mr Buffett's counsel.
Mr Buffett's company, Berkshire Hathaway, will retain its stake in Gillette, despite his departure, the company said.
Berkshire owned 96 million shares, or 9.1 per cent of Gillette's outstanding stock, at the end of 2001.
Mr Buffett will end his tenure on the Boston-based company's board at its annual meeting in May 2003.
"Leaving the Gillette board is difficult," the Gillette statement quoted Mr Buffett as saying. "However, I feel very good about the company's future."
Mr Buffett, who is also on the boards of Coca-Cola and Washington Post, is due to receive $75,000 (€76,750) in cash and stock as a Gillette board member this year and an additional $5,000 for being a committee chairman. - (Reuters)
