Aristocrat boss set to resign

Chief financial officer Lionel Jeyaraj is understood to have left the company last Friday, a day after the board began a review of the company's operations in the US.

As rumours circulated yesterday that Mr Randall and Mr Jeyaraj had left, shares in the world's second biggest poker machine maker bounced off four-year lows to $1.65, up 9c on the day, with 7.74 million shares changing hands.

A spokeswoman for Aristocrat declined to comment on the speculation but said an announcement would be made to the Australian Stock Exchange today or Monday.

Mr Randall is understood to have resigned following acrimonious meetings with chairman John Ducker this week.

``Des and Ducker were at each other's throats," a source close to the company said.

Mr Randall, who was appointed chief executive in 1998 by former chairman Frank Burke, is expected to be replaced by group general manager David Creary.

ABN Amro analyst Sean Monaghan said Mr Creary was well respected in the gaming industry.

``It is definitely a step in the right direction. It shows the board has the strength to do its job," Mr Monaghan said.

Mr Randall would be the third chief executive to leave Aristocrat since it listed in 1996.

Shares in Aristocrat have fallen by $2.57 since February 7 when the company downgraded full year profit by $28.8 million to $80.2 million.

In a series of confusing announcements to the market, Aristocrat initially blamed a failed contract in South America for the profit drop. But as analysts downgraded the stock, Aristocrat issued a second statement saying weaker-than-expected earnings in the US, coupled with the failed South American contract, were to blame.

Shortly after announcing a review of the US operations, Aristocrat sacked the three top US executives. Gavin Isaacs, the head of Aristocrat's European operations, took over as president of the US operation.

The Australian Securities and Investments Commission has launched an investigation into Aristocrat's corporate governance practices.

Meanwhile, it is understood that several disgruntled investors are attempting to gain greater control of Aristocrat's board.

An Ainsworth family source has previously told the Herald that the family had contacted the gaming regulator to reinstate their voting powers.

The Ainsworths gave up their voting rights in 1997 after a member of the Nevada Gaming Control Board expressed concerns about police allegations against Aristocrat founder Len Ainsworth. At the time Aristocrat had been applying for a licence to sell poker machines in the state.

Nine members of the Ainsworth family, including Len Ainsworth, signed separate agreements not to exercise their votes on matters relating to the board and how it operates, but can vote on a takeover.

The Ainsworth family owns almost 40 per cent of Aristocrat and would be entitled to at least one seat on the board if the voting restrictions were lifted.