Major board changes at Leighton

THREE board members at construction giant Leighton have stood down because of a breakdown in relations with its major shareholder.

Chairman Stephen Johns and non-executive directors Wayne Osborn and Ian Macfarlane, a former Reserve Bank of Australia governor, had tendered their resignations, the company said.

"They have resigned following what they perceive to be a breakdown in relations with the major shareholder Hochtief and their view that Hochtief no longer supports an independent board at Leighton," the company said in a statement on Friday.

German construction company Hochtief holds a majority interest in Leighton, and has two representatives on what was the company's 10-person board.

Leighton said its independent board structure had been a substantial contributor to the company's growing value, and the current arrangements with Hochtief were expected to continue.

"We believe this is well understood by the market," Leighton said.

A board meeting will be held as soon as possible to elect a new chairman, it said.

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