Rogers shares dip after founder's death

Shares in Rogers Communications Inc. lost a bit of ground in trading Tuesdayfollowing the announcement of the passing of its founder and chief executive officerTed Rogers.

RCI was down $1.04, or 3.01 per cent, to $33.48 in the session. Rogers died earlyin the morning afterhaving suffered for years from congestive heart problems.

Investors already had priced in some type of leadership change at Rogers Communications since he had been admitted to hospital on Oct. 31. The company's share price traded in a narrow range with a high of $36.09 and a low of $31.91 throughoutNovember.

After the market closed, Rogers announced layoffsbecause "advertising budgets have all but frozen," a spokeswoman said. About 100 people in television, publishing, digital operations and the Toronto Blue Jays ball club organization could be affected, a source told the Canadian Press.

Committee to find new CEO

In the wake of Rogers's death, the company's board of directors has formed a committee to start the search for a new CEO.

Alan Horn, Rogers Communications' chairman and acting CEO, will keep both hats for the time being, according to a company press release.

The board itselfis full of current and former Rogers Communications executives and other business and personal acquaintances of Ted Rogers, including:

• David Peterson former Ontario premier.
• Phil Lind vice-chairman of Rogers' Communications who has been with the company since 1969;
• Chris Wansbrough former OMERS chairman and current Rogers executive.
• Peter Godsoe former CEOof the Bank of Nova Scotia.
• Colin Watson former president and CEO of Rogers' cable division.
• Ted Rogers's wife Loretta.
• Two of his children, Edward, the current president of Rogers Cable, and Melinda, the senior vice-president ofstrategy and development of Rogers Communications.

Ted Rogers, who owned most of the RCI voting shares, had established a trust to hold the company stock. That trust isoverseen by a 15-member board.

He put the structurein place as way of avoidingthe succession problems that have plagued some other family-run enterprises.

Thomson Corp., the Toronto-based but internationally focused information company, is an example of a business where the family held control, but the managers are vital to the operations.

Industry analysts are eyeing a couple of RCI executives as potential CEO candidates, especially after Rogers said in his recent autobiography (written with business writer Bob Brehl) thathe would like to see someone within the company ashis successor.