Reddy Ice puts sales executive on leave, hires COO

Reddy Ice Holdings Inc., which sells packaged ice, said Monday its executive vice president in charge of sales and marketing has been relieved of duties after an internal investigation determined he likely violated company policies and is associated with possible antitrust violations.

The company also said it named a new operating chief and that it is suspending its dividend.

A special committee of the company's board _ formed to investigate possible antitrust violations related to a probe by the U.S. Department of Justice _ has not determined that Ben D. Key broke any laws. The committee's investigation is ongoing.

Key is on a paid leave of absence and has been relieved of his duties, effective Friday.

The justice department, 19 attorneys general and the attorney general of the District of Columbia are investigating possible antitrust in the packaged ice industry. The company said it is cooperating with the investigators.

The company said in separate statements that it named Paul D. Smith chief operating officer, filling a position left vacant since Raymond D. Booth left the company in January, and that it is suspending its quarterly dividend indefinitely.

Smith previously worked for companies like Procter & Gamble Inc. and PepsiCo, the company said.

Reddy Ice previously paid dividends at a rate of $1.68 per share annually.

Reddy Ice shares closed Friday at $7.84. They have traded in a range of $7.40 to $29.50 in the past 52 weeks.