F1 board lining up former Diageo CEO Paul Walsh to replace Peter Brabeck as chairman
Formula One Group’s (F1) board will next week discuss whether to appoint former Diageo CEO Paul Walsh to replace current Chairman Peter Brabeck, the Financial Times reported. The newspaper cited people with knowledge of the situation for the claim.
The buyout group CVC Capital Partners holds a 35.5% stake in F1, the item noted. It is believed that CVC wants Walsh to have an executive role as well as acting as chairman, according to the report.
The item cited one person familiar with the situation who said the potential appointment of Walsh could reduce the influence wielded by F1 chief executive Bernie Ecclestone.
Ecclestone said he had met Walsh and CVC co-founder Donald Mackenzie in November, the article added. The F1 CEO said Mackenzie had floated the idea of Walsh being appointed as chairman should Brabeck decide to step down. Ecclestone added that he would not have any concerns about Walsh performing some executive tasks.
CVC’s advisers have previously informed the private equity firm of their opinion that Ecclestone’s position stands in the way of its plans for an initial public offering of F1, the article noted. The IPO plans have been suspended but CVC wants to resume preparations for a listing, according to the newspaper.
Background:
A Bloomberg report on 4 October cited people with knowledge of the situation who said CVC is working with the investment banks UBS, Morgan Stanley and Goldman Sachs on a potential IPO to take place early next year. The people cited by the report estimated that a flotation could value Formula One Group at up to USD 3bn (EUR 2.44bn).
Financial Times, previously reported intelligence