Takeover talk as Sir Ian Wood steps down from "family firm" Wood Group SIR Ian Wood's retirement as chairman of the Aberdeen-based oil and gas services firm that bears his name could spark takeover bids for the FTSE 250 stock, analysts said today. Wood, whose grandfather founded the business in 1912, will hand over the reins on 1 November to Allister Langlands, currently the chief executive. Langlands in turn will be replaced by Bob Keiller, who joined Wood Group in December 2010 following the $955 million (£607m) takeover of Production Services Network (PSN). Although the City frowns on chief executives becoming chairmen - because it can make it harder for newcomers to change strategies - Wood Group said it had consulted with nine of its biggest shareholders before the deal was announced. Between them, the investors hold more than 40 per cent of the company's stock. Wood has been chairman of the firm since 1982 and served as chief executive between 1967 and 2000. His family retains a 12 per cent stake in the business, having sold down their holding last year from 30 per cent. Ian Marchant, Wood Group's senior independent director and chief executive at Perth-based utility SSE, said: "The leadership of Wood Group has been one of the most stable in the industry. The group and its shareholders owe a huge debt to Sir Ian. James Evans, an analyst at Canaccord Genuity, said Keiller "looks like a sensible appointment." He added: "Although little known to the City, having been internally-focused since joining the group, Keiller's track record is promising. While chief executive of PSN, the company increased its revenues by 50 per cent and expanded margins from 5 per cent to 8 per cent. This is a very good performance. Evans suggested: "Wood Group has, in the past, been seen as a takeover target, in part due to its mid-cap status but particularly due to the attractiveness of some of its businesses. With Sir Ian stepping away from the company and limited family involvement remaining, we think that there could be renewed speculation about Wood Group being targeted. Oriel Securities agreed the changes "may open up potential merger and acquisition activity or bids for the company," adding that the Wood family may try to sell its remaining shares. But Langlands dismissed the suggestion that the group would become a takeover target. He said: "There are always mischievous suggestions from analysts when changes happen. But the big changes - when I took over from Sir Ian as chief executive and when we took over PSN - have already happened. By comparison, this is fairly minor for the group. We are continuing to look at small bolt-on acquisitions ourselves.