Pacific Dunlop withdraws Ansell spinoff plan

MELBOURNE, Australia (March 28)—Pacific Dunlop Ltd., feeling pressure from disgruntled shareholders, has withdrawn a proposal to spin off glove and condom maker Ansell Healthcare Inc., and instead will pursue the divestment of its Pacific Brands consumer products business. Additionally, the firm announced Rod Chadwick, managing director and CEO, is leaving the company March 31 in connection with the cancellation of Ansell´s spinoff, a project he had overseen. Pacific Dunlop had proposed in early March setting up Ansell as a separate, publicly traded company, but the proposal met with resistance from shareholders, most notably Shamrock Holdings Inc., which owns 9.8 percent of Pacific Dunlop stock and options on an additional 3 percent. Pacific Dunlop plans to sell its automotive distribution business, Pacific Automotive, and is reviewing its options regarding its 50-percent stake in South Pacific Tyres with Goodyear, its partner in the venture. Following the revised restructuring plan, Pacific Dunlop´s core business would be Ansell Healthcare, which would be based in the U.S. Non-executive director Tony Daniels will be appointed acting CEO when Chadwick leaves.