(Associated Press via NewsEdge) Deutsche Telekom named Rene Obermann, the head of the company's T-Mobile wireless division, as its new chief executive.
Europe's biggest telecommunications company by sales announced the decision following a meeting of its supervisory board and after CEO Kai-Uwe Ricke tendered his resignation after four years in the top job.
The Bonn-based company said in a statement that its supervisory board decided to appoint Obermann as CEO, effective immediately.
Shares of Deutsche Telekom were up 2.9% at 13.52 euros ($17.35) on the Frankfurt exchange after the announcement.
Klaus Zumwinkel, chairman of the supervisory board, which is the equivalent of a board of directors, said Obermann, 43, would serve well in keeping costs contained and moving the company forward.
German Chancellor Angela Merkel, whose government still owns about 32% of the former telephone monopoly, said she expected that Telekom will operate 'successfully.'
T-Mobile has been one of Deutsche Telekom's bright spots, mainly through strong growth in the U.S. in recent years. While with T-Mobile, Obermann helped cut expenses there by 1 billion euros ($1.3 billion) and oversaw the elimination of 1,500 jobs.
But analysts wondered if Obermann, who was often viewed as a protégé of Ricke, would face similar scrutiny as the company seeks to stem its falling profits and lagging sales in face of increased competition in Germany and elsewhere in Europe.
© 2006 The Associated Press
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