Tate & Lyle recovery architect quits

THE architect of Tate & Lyle's rebound from basket case to would-be growth stock has quit as chief executive in a move that shocked the market. Harley-Davidson fanatic Larry Pillard is leaving the £1.8bn sweeteners and starches group to become executive chairman at Swiss-based packaging giant Tetra Laval.

Tate & Lyle said it had launched a recruitment process to replace the 55-year-old American, chief executive since 1996. News of Pillard's departure left the shares off 10p at 367p as surprised investors reacted to the departure of the man who, in the past two years, has led it out of disastrous US sugar operations and focused on more technically advanced products commanding higher margins.

Pillard, who trained as a dentist before joining the sugar industry, worked at commodities giant Cargill until Tate & Lyle recruited him in 1992 to turn round its US corn-milling investment AE Staley. He was the unit's fifth boss in four years but succeeded in restructuring it and was rewarded with the top job in the group.

Analysts had respected his decision to sell its US assets, despite a £338m write-off incurred by the company.

Only a week ago, Pillard was selling the firm's rosy future to investors while reporting underlying pre-tax profits of £159m against £113m a year earlier.

He will leave his £657,000 position at the end of the year but will retain his non-executive's post.