Germany Offers New Telekom CEO Candidate
The German government revived over the weekend its stumbling campaign to oust Deutsche Telekom Chief Executive Ron Sommer by fielding a replacement candidate well-placed to win key trade union backing.
A source familiar with the situation said Chancellor Gerhard Schroeder’s center-left government, which controls 43% of Europe’s largest telecommunications company, wants veteran Deutsche Telekom manager Gerd Tenzer to take over the reins from Sommer.
“Tenzer will be proposed to the supervisory board on Tuesday,” the source told Reuters.
Neither the Finance Ministry nor Tenzer were available for comment. A Telekom source said Sommer, under fire for a costly expansion policy and a tumbling share price, would not step down voluntarily, signaling a showdown at the meeting.
Sources close to Telekom said Sommer could be invited to Tuesday’s supervisory board meeting, which management usually does not attend.
Long criticized by investors, Sommer lost government backing after he became a political liability once the opposition turned the dismal performance of widely held Telekom shares into a campaign issue for the national election in September.
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