MTS CEO Pierre Blouin to Retire in 2014, Replacement Search Underway
MTS announced this morning CEO Pierre Blouin is set to retire later this year and its Board of Directors have already initiated a search for a replacement to be announced, prior to his departure from the company.
David Leith, Board Chair, said in a statement “Pierre Blouin has done an exemplary job as CEO of MTS Allstream during a decade marked by significant change and intense competition across both the MTS and Allstream businesses.”
Leith went on to explain he has helped the regional carrier attain “some of the best operating metrics in North America, including the highest market share and profit margins for an incumbent telecom provider despite operating in Canada’s most competitive telecom market.”
Canaccord Genuity analyst Dvai Ghose told the Canadian Press despite Blouin operating MTS under tough conditions, MTS is able to enjoy its sector leading wireless and wireline segment, while their broadband subscriber growth remains the best of any Canadian telecom or cable company. However, Ghose says the sale of Allstream or the telecom arm of MTS remains unlikely and conditions remain tough for the carrier.
“In summary, we believe that Blouin’s departure, while no doubt driven by personal factors, may have a negative impact on investor sentiment. That being said, we see limited downside in MTS shares due to the current 5.6 per cent dividend yield and our view that a further (dividend) cut is unlikely.”
Blouin is a former executive from BCE Inc., serving the company for over 20 years prior to his move to MTS in December of 2005. He added “I am very proud of what we have accomplished over the past decade, and felt that this was the right time to transition to new leadership.”