The sale of CBT shares worth about $39 million (£25 million) over the past year by Mr Bill McCabe should be seen in the context of his standing down as chief executive officer in late 1996 and as chairman two months ago, a spokesman for Mr McCabe has said.

A number of class actions alleging misrepresentation of the company's finances by company officers have been initiated in the United States following the collapse of the share price. Last night CBT shares were trading at $7 3/4 down from about $60 a month ago.

The decision of Mr McCabe to return to the helm of CBT last week following the company's share price collapse "could be a very strong catalyst for the recovery of the company", according to Mr Howard Block, an analyst with the US firm of BancBoston Robertson Stephens. "Many people outside and inside the company are excited to have him back in the fold."

"It's questionable if he will be able to repair the damage immediately but I believe the price may recover substantially over the next few months," Mr Block said.