Dell Inc. (NASDAQ: DELL) hired Solectron Corp. (NYSE: SLR) President and CEO Michael Cannon on Thursday for the newly created position of president of global operations. The appointment is effective immediately.
Solectron Corp., an electronics manufacturer, had announced Cannonâ€™s departure to another company late Wednesday. Cannon will be in charge of a global organization that will combine all of Dellâ€™s manufacturing, procurement and supply chain activities. The company is in the midst of a turnaround headed by Chairman and CEO Michael Dell.
Meanwhile, one analyst expressed concern about Solectronâ€™s direction.
The timing of Cannonâ€™s resignation will likely raise investor concerns especially since a new CEO could reevaluate current strategies, Merrill Lynch analyst Steven B. Fox said in a research note on Thursday.
Thus, the transition to a new CEO raises a risk that the company takes one step back before it takes two steps forward.
Solectron has named CFO Paul Tufano as the interim CEO while it searches for Cannonâ€™s replacement.
Fox maintains a sell rating on the company.
Shares of Solectron fell 0.3 percent, or 1 cent, to $3.37 in Thursday trading on the New York Stock Exchange. Shares of Dell rose 2.26 percent, or 54 cents, to $24.44 on the Nasdaq Stock Market.