DR TONY O'Reilly has given the strongest indication yet of his plans to step down as head of US food giant H. J. Heinz. Yesterday, he announced a number of senior appointments at Heinz, setting the stage for the race to succeed him.

Dr O'Reilly has previously said that he intended to remain as executive chairman and chief executive of Heinz for another two to three years. He has now appointed Mr William Johnson (47) as president and chief operating officer, making him the front runner in the succession stakes.

The title of president has been held by Dr O'Reilly since 1973, while the chief operating officer position has been dormant since Dr O'Reilly stepped up from the post to become chief executive officer in 1979. Dr O'Reilly became chairman in 1987 after the death of H.J. Heinz II.

Dr O'Reilly (60) is also the chairman of Independent Newspapers, Fitzwilton, Waterford Wedgewood and Arcon. He suffered an illness last Christmas, which, he said made him review his outlook on life. Earlier this year he paid a reported £1 million for a town house in Dublin's Fitzwilliam Square, which will become his Dublin office and residence.

His heir apparent, Mr Johnson, was previously a senior vice president of the company and is a director.

A number of other senior appointment were also made. Three other senior vice presidents, Mr Willaim Springer (56), Mr Luigi Ribolla (59) and Mr David Williams (53) were promoted to executive vice president.

Dr O'Reilly yesterday cancelled a speech he was due to give to the Horizons International Food and Drinks Conference in Dublin yesterday, in order to remain in Pittsburgh to announce the management changes, said a spokesman.