France Telecom chief axed

France Telecom chairman, Marcel Roulet, is to be ousted from his post and replaced by Francois Henrot, the chairman of Cie Bancaire. The change has been expected because of a clash between Mr Roulet and minister Francois Fillon over the future of the company and the prospects for privatisation.

Mr Fillon said yesterday that the Government would retain a majority stake in France Telecom but would reform its statutes to increase its competitiveness. He said that Mr Henrot would take over at the helm in preparation for the changes.