He was named last week as the replacement for Ian Russell, who was surprisingly axed by chairman Charles Miller Smith. Despite Bowman’s claims, it is thought that a number of other companies are lining up possible bids for the power giant.
Russell was said to be planning to leave this year when Scottish Power finally disposed of its US-based Pacificorp business but it is thought that Miller Smith, who had appointed a head hunter to replace Russell late last year, moved quickly to axe him after new reports that Eon was considering a fresh bid.
Another factor is believed to be speculation linking Bowman, a former Allied Domecq chief executive, with the chairman’s role at Scottish & Newcastle after his appointment as a non-executive director last week. It is claimed that neither company knew of the other appointment before it was announced.
The 53-year-old Australian is highly rated in the City and his appointment increased speculation that the Glasgow utility, Scotland’s third-biggest company, is being readied for sale.
Bowman left Allied Domecq after selling it to rival Pernod Ricard for almost £7 billion in July. But in a candid conversation with staff via a conference call, Bowman denied wanting to sell Scottish Power.
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“I am coming to grow the business. That’s what I do. I spent six-and-a-half years out of seven at Allied Domecq growing the business,” he said. He admitted knowing little about the utility sector but said he had “transferable and leadership skills” and would work “bloody hard to get up to speed”. He will arrive in Scotland today to start work at Scottish Power tomorrow, and is said to be already searching for a house north of the border.
One of his first tasks could be to appoint new executive directors. After Russell’s departure and his cull of the executive team last September, only two executives remain — Judi Johansen of Pacificorp, who will leave the board when the firm is sold, and finance and strategy director Simon Lowth.
Russell has been seen as a lame duck chief executive after rejecting Eon’s 570p-a-share bid in November. The German utility had been stalking Scottish Power since September but walked away after Russell’s rejection.
Since then the share price has fallen and it was felt that the company would be hard-pushed to get such a high price in any future bid.
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Eon is barred from making another bid until May but has been suggesting recently that it would be interested when the time is up.
Analysts were divided on whether Bowman’s move made a sale more, or less, likely but one source suggested that taking the S&N role at virtually the same time meant that he was not viewing the Scottish Power job as long-term.
“It’s a get-out clause for him. Would he really have taken it knowing he was going to be doing both roles for a long time?” the source said.
Russell’s strategy to build the company had been in tatters since he sold off most of the big acquisitions at a loss.
He is believed to be walking away with a pay-off that could approach £5m.
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Bowman, who has Scottish roots, is said to know the Scottish business scene from his time at Allied Domecq.