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There was some talk in the City today that Anglo American will consider ditching chief executive Cynthia Carroll as a main plank of its defence against a merger with rival Xstrata.
Anglo today confirmed the appointment of serial non-executive Sir John Parker as chairman, replacing the outgoing Sir Mark Moody-Stuart.
Analysts say Sir John's first task will be to decide whether to back the under-fire Carroll or ease her out as a way of appeasing investors and fending off Xstrata.
Carroll is facing criticism after slashing the mining giant's dividend and appears to have lost the confidence of some shareholders.
Ditching the chief executive in the midst of a takeover battle — a tactic dubbed the Marks & Spencer defence — would be bold, analysts say, but would show Anglo's intention to stay independent.
Xstrata has proposed a £41 billion nil-premium merger, which investors have rejected.
But they might be keen to see Xstrata boss Mike Davis running a combined company — providing he is able to come up with some cash to sweeten the deal.
Sir John's arrival is a surprise to some. Recent reports claimed the South African public sector pension fund, a major shareholder, had vetoed his appointment a year ago.
And some on the board wanted to see a black South African candidate put in place.
Sources say such candidates were considered but then rejected on the grounds that Sir John would be a better bet.
Sir John, the chairman of National Grid, is one of Britain's foremost industrialists having been on 12 public company boards during the past 25 years.
He will have to give up some of his present roles, probably including his position as joint chairman of the Mondi Group, to allow time to focus on Anglo.
Michael Rawlinson, an analyst at Liberum Capital said: “Having sold many companies he has a very strong track record in corporate action. His appointment will be taken positively.”
Sir John led the sale of P&O to DP World of Dubai in 2006 and RMC to Cemex of Mexico in 2005.
In a statement today, Sir John backed Carroll.
“I look forward to working with the board and the excellent management team led by Cynthia Carroll,” he said, adding that he knows South Africa “very well” through his years with Babcock International.
