Tate & Lyle chairman-elect takes a lump

Sir Peter Gershon, chairman-elect of Tate and Lyle, showed his faith in his new employers by spending nearly £100,000 on shares in the sugar firm.

Sir Peter, who was appointed a non-executive director and named as the next chairman in November, bought 34,700 shares at 285.3p a time.

It was his first purchase of shares in the firm.

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Tate and Lyle shares are down nearly 50% over the past year.

Sir Peter has had a 30 year career in the computer, telecommunications and defence industries. Between 1987 and 1999 he was managing director of STC Telecommunications, GPT and Marconi Electronic Systems.

In 2000, he was appointed chief executive of the Office of Government Commerce. He is and will also remain chairman of Premier Farnell.

He cautioned profits will be similar to last year and at the low end of market forecasts after orders slowed in the second half.

Its Food & Industrial Ingredients, Americas division, has seen significant de-stocking by customers, although in the first weeks of January 2009 there were signs this may now be coming to an end. Ethanol margins are also under pressure in the short term due to low petrol prices.

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