Xstrata sacks Pannell, Regent (August 21, 2006)

Swiss-based Xstrata (XTA-L) did not waste anytime gutting Falconbridge (FL-T, FL-N) management after winning the takeover battle for Canada’s iconic nickel miner.

Former CEO Derek Pannell was shown the door, along with former CFO Steve Douglas, and all but one director – James Wallace, who agreed to remain a member of the interim Falconbridge board.

Aaron Regent, former president of Falconbridge, has also left, while Joe Laezza, former president of Falconbridge’s nickel operations, retired.

Xstrata effectively sacked one of the most impressive boards in Canadian business. Joining Pannell and Regent on the sidelines are former directors Andr Brard, retired chairman of the National Bank of Canada; Al Flood, retired chairman and chief executive of the Canadian Imperial Bank of Commerce; Maureen Kempston Darkes, a former head of GM Canada; and chairman David Kerr, a former CEO of Falconbridge.

“Each of the members of the board of directors has resigned at Xstrata’s request,” Xstrata said in an announcement, noting that it has acquired 92.1% of all common shares in Falconbridge.

Sifting through the rubble one finds a handful of survivors, including Ian Pearce, the former Falconbridge COO, who is now the chief executive of newly formed Xstrata Nickel. Bill Brooks, once the president of the aluminum division at Falconbridge, was appointed chief executive of Xstrata Aluminum. And Robert Sippel, formerly head of zinc at Falconbridge, was appointed COO of Xstrata Zinc Canada.

Pearce, Brooks and Sippel will report to Mick Davis, head of Xstrata. The new board members include Xstrata nominees Benny Levene, Thras Moraitis, William Ainley and Douglas Knight. Ainley will serve as chairman.