B&B looks inside for new CEO

An insider may replace Phil Green as chief executive of infrastructure financier and investment bank Babcock & Brown.

Michael Larkin, B&B's chief financial officer, is the Financial Review's tip. Peter Hofbauer, B&B's global head of infrastructure and project finance, is The Australian's alternative tip. The Sydney Morning Herald reported the new CEO may be either Larkin or the chief operating officer, David Ross.

The AFR newspaper reported speculation earlier this week that the firm may replace its CEO. The firm's executive chair, Jim Babcock, is also tipped to stand down.

B&B late yesterday effectively confirmed to the ASX that a management change, and perhaps board changes, may be announced tomorrow in conjunction with publication of B&B's financial statements for the June 2008 year. An outline of a revised strategy is also likely tomorrow.

The market capitalisation of B&B and several listed infrastructure vehicles it manages have taken a hammering on the ASX this week, largely triggered by the sale of assets and write-downs in B&B Power.