UPDATE 3-CEO of Canada's Rona steps down; shares jump

Fri Nov 9, 2012 3:02pm EST
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* Lowe's withdrew takeover proposal in September

* Lowe's says no recent talks with Rona

* Robert Dutton has been chief executive since 1992

* CFO Boies to be interim chief executive

* Rona shares jump more than 7 percent (Recasts with surprise after disappointing results, adds investor comments, updates share price move)

By Allison Martell and Euan Rocha

TORONTO, Nov 9 (Reuters) - Canadian home-improvement retailer and distributor Rona Inc, which earlier this year rejected a takeover offer from U.S.-based rival Lowe's Cos Inc, said on Friday that Chief Executive Robert Dutton was stepping down, a surprise move that came two days after disappointing results.

Rona said Chief Financial Officer Dominique Boies would serve as acting CEO while the company looks for a successor. Rona shares jumped amid speculation that the Quebec-based company might be in play.

Fund manager Irwin Michael, whose I.A. Michael Investment Counsel Ltd is one of Rona's top shareholders, said Dutton's "completely unexpected" departure gives the company a chance to rethink its plans.   Continued...