UPDATE: Akzo Nobel CEO Takes Temporary Medical Leave, Citing 'Fatigue'

--Buechner, 47, is expected to return to work in the first half of October

--Buechner joins a small band of senior executives who have taken breaks from major companies after citing fatigue

--Shares close down 5.5%

 
   By Doug Cameron 
 

Akzo Nobel NV (AKZA.AE, AKZOY) said Tuesday its chief executive will take several weeks of leave after being diagnosed with "temporary fatigue," just five months after joining the Dutch chemical and paint maker.

Ton Buechner, 47, is expected to return to work in the first half of October, though the company said an investor meeting scheduled for Oct. 22 had been postponed indefinitely, with Chief Financial Officer Keith Nichols taking on additional responsibilities in the CEO's absence.

Mr. Buechner joins a small band of senior executives who have taken temporary or permanent breaks from major companies after citing fatigue, notably Antonio Horta-Osorio, who departed last November from the CEO slot at Lloyds Banking Group PLC (LLOY.LN, LYG) just eight months after joining the U.K. company.

Mr. Buechner joined Akzo Nobel in April after heading Swiss machinery maker Sulzer AG (SULZF, SUN.EB) for five years, and a spokesman for the Dutch company said the executive had "taken on too much work."

Akzo Nobel is the world's largest paints-and-coatings maker by revenue, but like rivals it has been hit by the slowdown in the global auto and construction markets, though second-quarter earnings released in July beat analysts' expectations.

The upcoming investor meeting had been keenly anticipated by investors as Mr. Buechner's first opportunity to detail new cost-saving plans, though he wasn't expected to announce any big changes to a portfolio that includes domestic and industrial paints and specialty chemicals.

The company has been wrestling with declining volume and relying on higher prices to counter volatile raw-material costs, notably for titanium dioxide, a paint pigment.

Akzo Nobel derives more than a third of its sales from Europe and 20% from North America, employing 55,000 staff members in more than 80 countries. Its shares closed down 5.5% at 46.16 euros ($60) a share, declining from a 52-week high in the previous session.

"I was sad to learn about Ton's condition and we all look forward to seeing him back in the office shortly," said Karel Vuursteen, chairman of Akzo Nobel's supervisory board.

--Robert van den Oever contributed to this article.

Write to Doug Cameron at [e-mail]

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