SKYEPHARMA’S board is considering promoting a current non-executive to the position of chairman in a two-pronged attempt to see off rebel shareholders wishing to install their own candidate.

It is understood that the board, which meets today in San Diego, to finalise a management reshuffle, will appoint either David Ebsworth or A. N. Karabelas to the position. The company will also name a new chief executive from outside, and possibly even a new finance director.

Mr Ebsworth, who has been on the board since 2002, was formerly worldwide head of pharmaceuticals for Bayer, the German drugs giant. Mr Karabelas, a former chief executive of the pharmaceuticals arm of Novartis, joined SkyePharma in 2000.

Disaffected shareholders have requisitioned an extraordinary general meeting to force the board to appoint Bob Thian after ousting the former chairman, Ian Gowrie-Smith, last month.

It is understood that attempts to appease the shareholders by offering Mr Thian a non-executive position had failed, although sources familiar with the situation last night emphasised that talks over the final shape of the board were still very fluid.

Earlier, the rebel shareholders suffered a setback after Mr Thian conceded that profits at his current company would miss analysts’ forecasts. The surprise announcement initially knocked 21p off the shares of Whatman, a specialist DNA filter manufacturer, before a clarification from Mr Thian over prospects for 2006 helped the shares to recover to end the day 5¼p down at 286p.

SkyePharma has always insisted that the board, which has so far resisted the rebel shareholders’ demands, would not be bullied into a decision. A spokesman said that the board would take into account Mr Thian’s most recent performance, adding that it would be “remiss” of directors to ignore Whatman’s downbeat trading statement.

It is expected that SkyePharma’s board, which is also likely to consider break-up offers for the business after the botched sale of the entire company, will sit for most of the day. An announcement regarding Mr Gowrie-Smith’s successor is unlikely before the London stock market opens tomorrow.

Mr Thian insisted that Whatman had put its troubles behind it and that the company expected revenue growth in 2006 to hit analysts’ forecasts of between 6 and 8 per cent. He blamed the poor performance on management changes, which had affected sales.

Shares in SkyePharma edged ¼p higher despite news that Fidelity, one of its biggest shareholders, had again trimmed its holding. The fund manager sold 500,000 shares at 44p, lowering its stake to 6.4 per cent.

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