Veteran investor Bob Morton has shared his plans with Recruiter on how he will transform the two recruitment businesses in which he has a major stake.

He has taken over as non-executive chairman of IT recruiter Lorien Group.

His company, Guernsey-based Southwind, also owns a 58% stake in health recruiter Multi Group. Morton says executive chairman Oliver Cooke will be leaving Multi "without a shadow of a doubt". Cooke led the acquisition of Global Medics last year, which proved to be a disaster (Recruiter, 9 August 2006). Morton said he would be appointing a new chief executive, a former Hays man.

Multi shares have been suspended for the last four months pending an acquisition announcement. Morton said he would be reversing another recruitment company into Multi, meaning an unlisted company bigger than Multi.

Morton's company, Southwind, owns 41% of Lorien and was recently obliged to make a cash offer for the remainder, which failed (see www.recruiter.co.uk). He said: "I wouldn't have minded if I'd have had to buy the whole company." He said he would dispose of loss-making businesses, reduce costs and grow the top line, both organically and by acquisition.

Morton replaces Bert Morris, executive chairman for the last eight years. Admiral Sir Brian Brown and John Wallace, non-executive directors, have also left the Board.

Ian Brookes, managing director, and Christopher Hinton, finance director, will remain in place. The company has no chief executive. Morton said he was considering this situation, and would make an appointment in due course.

Lorien shares have recently been trading at more than 75% above the 40p level of the mandatory cash offer. Multi considered taking over Lorien in 2005, but Morton told Recruiter he now had no plans for any such tie-up.

Morris said: "Bob's ambitions for Lorien accord with the objectives of the current Board. He knows the company and the sector well."

Morton also has a stake in executive search firm Hat Pin.