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By Li-mei Hoang
LONDON (Reuters) - Troubled British infrastructure group Balfour Beatty (L:BALF) has named Leo Quinn, head of defence technology firm QinetiQ (L:QQ), as its new chief executive, opting for a boss with a track record of turning businesses around.
Balfour, which has issued a string of profit warnings in the past year, has been without a CEO since May when Andrew McNaughton stepped down.
The company, which provides construction, engineering and facilities management services in more than 80 countries, said Quinn would start the job on Jan. 1.
Shares in Balfour Beatty rose more than 13 percent to 169p following the announcement of Quinn's appointment.
"Leo has made a success of turning businesses around that have lost their way and with QinetiQ now positioned with the structure, processes and balance sheet to continue its journey, he is moving on to his next big challenge at Balfour," said Roger Johnson, analyst at Edison Investment Research.
Shares in Qinetiq fell 8 percent to 200.2p by 0745 GMT, reflecting disappointment at the loss of Quinn after five years at the helm.
Chief Financial Officer David Mellors will take over as acting CEO when Quinn leaves until permanent appointment is made. The company said a search for a new CEO has started.
Quinn, who also formerly held the role of CEO at banknote printer De La Rue (L:DLAR), will receive a basic annual salary of 800,000 pounds in addition to a pension and company benefits.
"His track record at QinetiQ is that he is extremely good, in terms of what he has done recently but also, in terms of his turnaround capabilities," said Howard Seymour, analyst at Numis Securities.
"It is a positive from the view of sentiment because it does get rid of an uncertainty that has been there for some time. Clearly his credentials look excellent ... and the share price is telling that as well," he added.
Balfour, which rejected a takeover offer from UK rival Carillion (L:CLLN) for the third time in August, is undergoing a review by auditing firm KPMG across its construction business in Britain.
"Leo is an outstanding individual with an excellent track record in improving the performance of major international businesses," Balfour Executive Chairman Steve Marshall said in a statement.
"He has the depth and breadth of experience and the drive to lead our company through the next stage of its development," he added.
(Reporting by Li-mei Hoang; editing by Susan Thomas/Keith Weir)