(Associated Press via NewsEdge) Vodafone Group has appointed Vittorio Colao as European CEO, in a move to combat tough trading conditions in the region.
Colao, who is currently CEO at Italian media company RCS Media Group, replaces Bill Morrow who left Vodafone in July to return to the United States for family reasons.
He will also become deputy CEO when he joins Vodafone in October, replacing Julian Horn-Smith, who also stepped down recently.
Morrow's departure was one of a string of exits by high-profile executives in the first half, forcing the telco to deny reports of rifts at the company's helm.
Traders said Tuesday that Colao's appointment was a positive move, as it could spark speculation that he would eventually replace Arun Sarin as CEO.
Sarin has come under fire from shareholders in recent months due to a lackluster share price performance and a widespread perception that Vodafone still lacks a credible strategy for further growth.
The company's shares rose 0.4% to 114.5 pence ($2.18) on the London Stock Exchange.
'We have a number of major challenges and opportunities in our European region and I am confident that, given his background and experience, Vittorio is well equipped to succeed in this position,' Sarin said.
Before joining RCS Media in 2004, Colao held a number of positions within Vodafone, as chief executive of Italy and then the Southern Europe, Middle East and Africa Region.
'He was held in high regard the first time he was at Vodafone and it was seen as a loss when left,' said WestLB analyst Morten Singleton.
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