Shares in Emap dive on Arculus resignation

Investors yesterday took fright at the unexpected resignation of David Arculus as managing director of Emap, the magazines and exhibitions group. Shares in Emap dropped by 28p to 785.5p, wiping pounds 58m from its stock market value.

His decision to join United News & Media comes only months after Emap was rocked by a corporate governance row that culminated in the ousting of two non-executive directors.

At that time Sir John Hoskys, chairman, played down rumours of a rift between Mr Arculus and Robin Miller, chief executive, over who would succeed him when he retires next year. Mr Miller, tipped to succeed Sir John, said yesterday no decision had been taken over who would become chairman.

Some analysts were surprised by the sharp mark-down yesterday in the share price of Emap. The company said Mr Arculus's departure was of his own choice.

Nick Ward, an analyst at Credit Lyonnais Laing, said: "The fact that Arculus is leaving is slightly disturbing." However, he added: "But the place will not fall apart without him."

Another analyst said the move was beneficial to both companies, simplifying the management structure at Emap and bringing new expertise to United, which has expanded rapidly following last year's merger with MAI and the takeover of the Blenheim exhibitions group.

Mr Arculus joined Emap as corporate planner from the BBC in 1972 and became group managing director in 1989. One of his main contributions has been in merging the business magazines and business exhibitions divisions. He was seenas an outside candidate for the chairmanship, being more likely to move up to chief executive.

He was head-hunted for hisjob at United and his decision to leave was reported to the Emap board on Friday. His responsibilities will pass directly to the heads of the four operating divisions and he will not be replaced as managing director.

Sir John said: "We are sad to see David go, but recognise the appeal of UN&M, which includes mainstream television and newspapers, areas in which Emap does not operate."

Mr Arculus also emphasised the amicable parting. "I leave Emap in very capable hands. It's a company I admire greatly," he said.

Mr Arculus said he would be taking on a far bigger job at United, having operational responsibility for consumer publishing, broadcasting and entertainment, which accounts for almost 80 per cent of group turnover and profits.

He declined to say how much his remuneration package would be when he joins United on 7 April.

Under his charge will be UK consumer publications including Express newspapers, Exchange & Mart and Dalton's Weekly, US consumer publications - mainly free pick-up magazines -the broadcasting division and Miller Freeman, the business magazines and exhibitions group, which alone is roughly equal in size to Emap. He remains a substantial shareholder in Emap, although it was believed yesterday he would dispose of his holdings in order to further his intention of becoming a substantial shareholder in United News & Media.

The price of United jumped 16.5p to 704p.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
Life and Style
Suited and booted in the Lanvin show at the Paris menswear collections
fashionParis Fashion Week
Arts and Entertainment
Kara Tointon and Jeremy Piven star in Mr Selfridge
tvActress Kara Tointon on what to expect from Series 3
Voices
Winston Churchill, then prime minister, outside No 10 in June 1943
voicesA C Benson called him 'a horrid little fellow', George Orwell would have shot him, but what a giant he seems now, says DJ Taylor
News
i100
Sport
footballBrighton vs Arsenal match report
Arts and Entertainment
Benedict Cumberbatch has spoken about the lack of opportunities for black British actors in the UK
film
News
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Tax Assistant

Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...

Recruitment Genius: Outbound Sales Executive - OTE £25,000

£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...

Ashdown Group: Java Developer / J2EE Developer - Watford - £45,000 - £47,000

£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...

Ashdown Group: Marketing Product Manager - (Financial Services) - SW London

£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

Day In a Page

Syria crisis: Celebrities call on David Cameron to take more refugees as one young mother tells of torture by Assad regime

Celebrities call on David Cameron to take more Syrian refugees

One young mother tells of torture by Assad regime
The enemy within: People who hear voices in their heads are being encouraged to talk back – with promising results

The enemy within

People who hear voices in their heads are being encouraged to talk back
'In Auschwitz you got used to anything'

'In Auschwitz you got used to anything'

Survivors of the Nazi concentration camp remember its horror, 70 years on
'I'm gay, and plan to fight military homophobia'

'I'm gay, and plan to fight military homophobia'

Army general planning to come out
Autumn/winter menswear 2015: The uniforms that make up modern life come to the fore

Autumn/winter menswear 2015

The uniforms that make up modern life come to the fore
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign

What the six wise men told Tony Blair

Months before the invasion of Iraq in 2003, experts sought to warn the PM about his plans. Here, four of them recall that day
25 years of The Independent on Sunday: The stories, the writers and the changes over the last quarter of a century

25 years of The Independent on Sunday

The stories, the writers and the changes over the last quarter of a century
Homeless Veterans appeal: 'Really caring is a dangerous emotion in this kind of work'

Homeless Veterans appeal

As head of The Soldiers' Charity, Martin Rutledge has to temper compassion with realism. He tells Chris Green how his Army career prepared him
Wu-Tang Clan and The Sexual Objects offer fans a chance to own the only copies of their latest albums

Smash hit go under the hammer

It's nice to pick up a new record once in a while, but the purchasers of two latest releases can go a step further - by buying the only copy
Geeks who rocked the world: Documentary looks back at origins of the computer-games industry

The geeks who rocked the world

A new documentary looks back at origins of the computer-games industry
Belle & Sebastian interview: Stuart Murdoch reveals how the band is taking a new direction

Belle & Sebastian is taking a new direction

Twenty years ago, Belle & Sebastian was a fey indie band from Glasgow. It still is – except today, as prime mover Stuart Murdoch admits, it has a global cult following, from Hollywood to South Korea
America: Land of the free, home of the political dynasty

America: Land of the free, home of the political dynasty

These days in the US things are pretty much stuck where they are, both in politics and society at large, says Rupert Cornwell
A graphic history of US civil rights – in comic book form

A graphic history of US civil rights – in comic book form

A veteran of the Fifties campaigns is inspiring a new generation of activists
Winston Churchill: the enigma of a British hero

Winston Churchill: the enigma of a British hero

A C Benson called him 'a horrid little fellow', George Orwell would have shot him, but what a giant he seems now, says DJ Taylor
Growing mussels: Precious freshwater shellfish are thriving in a unique green project

Growing mussels

Precious freshwater shellfish are thriving in a unique green project