Lawyers keeping ‘watchful eye’ on Domain after chief Antony Catalano’s shock exit sparks plunge

HIGH powered class action lawyers are keeping a “watchful eye” on Domain after the shock exit of its chief Antony Catalano sparked a plunge in the company’s value.

HIGH powered class action lawyers are keeping a “watchful eye” on Domain after the shock exit of its chief Antony Catalano sparked a plunge in the company’s value.

The resignation of Mr ­Catalano only two months after listing with shareholders shocked the real estate and media sectors as he was the brash executive identified with the company’s rise.

The revelations of his exit for family reasons led to a huge share market fall on Monday, ripping $328 million off ­Domain’s value as its shares plunged 17.17 per cent.

Yesterday, Domain shares bounced back by 9.09 per cent to $3, but were still down $184 million since Mr Catalano revealed his resignation.

The company has now lost 21 per cent of its value, or $396 million, since being spun out of media player Fairfax in November last year.

DOMAIN LOSES $320M IN MARKET VALUE AS CHIEF ANTONY CATALANO QUITS

It is also believed the Australian Securities and Investments Commission is keeping an eye on the matter.

Asked whether the sudden departure only eight weeks after it hit the Australian share market could lead to a class action, law firm William Roberts Lawyers said it was watching the situation. “(We are) aware of the recent announcements associated with Domain Holdings, together with the price movements,” the firm said in a statement. “We are keeping a watchful eye on the company.”

It is believed Mr Catalano only revealed the decision to the board after he came back from his Christmas break and it quickly moved to tell the market.

But the surprise exit, only eight weeks after the company listed, has angered some ­investors.

The nation’s peak mum-and-dad shareholder group, the Australian Shareholders Association, said the controversy raised questions about why these discussions did not occur at the time of the float.

Antony Catalano's boutique hotel Rae's on Wategos

Fairfax took full control of Mr Catalano’s Metro Media in 2015 in a $72 million deal that saw his company rolled into Domain.

The media company in February last year revealed ­Domain would be spun out with Fairfax shareholders being given one Domain share for each 10 shares they held.

While many identify Mr Catalano as the reason for Domain’s success, some analysts were yesterday saying the exit of Mr Catalano could be good for the listed company.

Deutsche Bank upgraded the recommendation to a “hold” from a “sell”. UBS upgraded to a “buy” from a “sell”.

On Monday, the 50-year-old Mr Catalano — who has eight children from three marriages — said if he remained in the top job it would put pressure on his young family.

“It has become clear to me that doing the job of a listed company CEO the way it needs to be done means that I am not meeting that family commitment.”