BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
 You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
Friday, 15 November, 2002, 11:51 GMT
WorldCom names new boss
Michael Capellas
Mr Capellas has just ridden out a massive merger
Michael Capellas, who resigned as president of computer maker Hewlett-Packard on Monday, has been named as the new chairman and chief executive of bankrupt US telecoms giant WorldCom.

Mr Capellas will take over from interim WorldCom chief executive John Sidgmore.

"I took this job because I am convinced that WorldCom has the assets, the customers and the people to regain a leadership role in this industry," he said in statement.

"In order to do this, we must first regain trust and win respect."

WorldCom filed for the largest bankruptcy in US history in July after an accounting scandal which saw the company restate its profits by more than $9bn.

Mr Capellas said the company was more stable now, with cash reserves of $1.4bn and a restructured the broad, accounting department and audit team.

Future calls

"I have spoken to many groups - creditors, managers, and board members - and it is everyone's desire to see this company succeed," Mr Capellas said.

There was no indication from the company what role the current chairman, Bert Roberts, and chief executive, John Sidgmore, would retain.

Mr Sidgmore took over as chief executive in April when Bernie Ebbers resigned.

The second largest long-distance US phone carrier, which also transmits almost half of the world's internet traffic, is saddled with $40bn in liabilities.

WorldCom still faces criminal and regulatory investigations in the US over accounting fraud.

Mr Capellas was the chief executive of computer maker Compaq before it merged with rival Hewlett-Packard last year, after which he became president of the combined group.

WorldCom

Latest news

Analysis

Background

AUDIO VIDEO

TALKING POINT
See also:

11 Nov 02 | Business
05 Nov 02 | Business
22 Oct 02 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes