New top man at Deutsche Telekom

Rene Obermann is Deutsche Telekom's new leader

German phone giant Deutsche Telekom has announced that the head of its mobile phone arm, Rene Obermann, is to be its new chief executive.

The previous incumbent, Kai-Uwe Ricke, stepped down with immediate effect on Monday morning - a decision which helped push the firm's shares up 3%.

Deutsche Telekom, Europe's largest telecoms group by sales, gave no reason for Mr Ricke's departure.

But the change follows poor results, and pressure from shareholders.

Earlier in November, Telekom said its profits in the three months to 30 September were 34% down on the year before.

The firm has been hit by increased competition in its main German market, but T-Mobile - the unit which Mr Obermann has led - has consistently been the group's best performer.

Check Deutsche Telekom's share price

In addition to its falling profits, Deutsche Telekom is also currently embroiled in a row with French media group Vivendi.

Vivendi has filed an official complaint against Deutsche Telekom's purchase of a 48% stake in Polish telecoms firm PTC from another Polish company, Elektrim.

The French firm, which itself owns a stake in PTC, insists that Elektrim had no right to sell Deutsche Telekom the stake as it was jointly owned with Vivendi.

Deutsche Telekom insists the deal was sound.