Elan Corporation, the troubled drug firm, will today unveil a restructuring package designed to restore the confidence of investors.
While the move will see the firm cut staff and abandon three product areas, it is understood that the jobs of 900 workers at its plant in Athlone, Co Westmeath, will not be threatened by the changes.
There is no expectation that the initiative will prompt the separation of the post of executive chairman, which is held by Mr Donal Geaney.
It is thought the company believes this is not required to appease investors in the US, where most of its stock is held.
However, the company has decided to appoint the former US attorney general Mr Dick Thornburg as lead independent director. Mr Thornburg is already a non-executive director.
He will chair a five-member nominating committee which will supervise executives. A corporate lawyer, he was attorney general under President Reagan and President Bush Snr.
Other non-executive directors are expected to retire soon in a development which will pave the way for the appointment of new directors.
Elan's current board includes its former president, Mr John Groom, the former IDA Ireland chief executive, Mr Kieran McGowan, the governor of the Bank of Ireland, Mr Laurence Crowley, and the former head of equities at Davy Stockbrokers, Mr Kyran McLaughlin.
Other directors include Dr Garo Armen, Mr Brendan Boushel, Dr Alan Gillespie, Ms Ann Maynard Gray, Dr Kevin McIntyre, Dr Dennis Selkoe, and Mr Daniel Tully.
The company's stock has collapsed in recent months amid concern about its accounting policy, which it says is unfounded.
Still, its market capitalisation on the Dublin exchange has fallen in the last month to €2,801 million from €4,271 million. A year ago it was worth almost €22 billion.
Most recently it lost almost 21 per cent in New York on Thursday before a partial recovery after a note by analysts at Credit Suisse First Boston queried its earnings and cash situation. Elan insisted there was no question of not meeting its debt obligations.
Shares in the company commence trading this morning at €8, more than 20 per cent less than the opening price of €10.90 at the end of the bank holiday last week. The company is expected to state today that it will concentrate on two of its five product areas.
In addition it will reduce the number of operational sites to about 16 from 32.
It will focus on urology and pain management in an attempt to convince the market that it can get those areas right before moving onto other things. This suggests the company's acute care, dermatology and cancer treatment operations will be ceased. It is thought that Goldman Sachs and Merill Lynch have been appointed as advisers in the company's disengagement from certain joint ventures.
