New job for former boss of BT

Posted by admin on 3 September, 2008 under Business news | Be the First to Comment

The former chief executive of phone firm BT, Ben Verwaayen has been appointed as the new boss of the loss-making telecoms company Alcatel-Lucent.

The company has been struggling since the French company, Alcatel bought US based Lucent Technologies in 2006.

Ben Verwaayen was chief executive at BT for six years, stepping down in June.

It is hoped that his experience in the telecoms industry will help bring Alcatel-Lucent back into profit and create a better merged organisation.

Alcatel-Lucent, the world’s largest maker of fixed-line telecommunications equipment, also named former EADS joint chief executive Philippe Camus as its non-executive chairman.

The new team will take over from Patricia Russo and Serge Tchuruk, who did the deal to merge Alcatel and Lucent.

Clash of cultures

Analysts said that Alcatel-Lucent’s patchy performance was not helped by clash of cultures between the French and US parts of the business..

In July, the company unveiled a three-month loss of 1.1bn euros ($1.7bn; £866m) and warned sales would not improve in this quarter.

The telecoms company has suffered six successive quarterly losses since the merger.

Ben Verwaayen has been credited with turning round the fortunes of BT, fighting off stiff competition and consolidating the firm’s position in the broadband market.

Acatel-Lucent’s board said that Mr Verwaayen’s years of experience in the industry had iven him a great insight into the company.

Mr Verwaayan said: “I’m truly delighted to become the chief executive of Alcatel-Lucent, leading a company with vast assets and great talents, while recognizing the difficulties and challenges ahead.

“I am committed to building significant and sustainable value for our shareholders, customers and employees.”

The 56-year-old will take up his new position at the company on 1 October.

News reported by The BBC