The Bookseller.com

7th September 2008

« Headlines

WHS shares slump over Swann future

27.11.07

W H Smith shares have plummeted to a year's low, after Morgan Stanley included the company on its Shorts Compendium list of stocks to sell, in the belief that Kate Swann may move to another retailer.

According to website This is Money, the broker believes that although chief executive Kate Swann has been offered a new three-year incentive plan which could see her collect a further bonus of almost £4m, there are rumours that she could be poached by another retailer in February (possibly Kingfisher) after she collects a £3m bonus from a long-term share plan that was put in place in 2004.

Stanley's analysts believe the scope for further cost cutting at WHS is limited and they see further cyclical pressure from a weakening UK consumer and a loss of market share to the internet and supermarkets.

This is Money

Retail W H Smith kate swann