Deutsche Telekom chief quits

DEUTSCHE Telekom chief executive Ron Sommer quit today, bringing an end to his seven-year reign at the German phone giant amid heavy pressure over the company's debts and slumping stock price.

The head of Europe's biggest phone company finally bowed to overwhelming pressure after reports that the German government, which holds 43% of its shares, was pressing for Gerd Tenzer, a member of the company's managing board, to replace him.

As its debts have ballooned to almost e70bn (£45bn), shares of Deutsche Telekom, have slumped by 90% since their peak in March 2000.

More than three million small investors were lured into investing in the company when it was privatised in 1996 and many are suffering heavy losses.

Sommer effectively signed his death warrant at the firm's annual meeting in May by granting top management 90% increases in their pay packets. That decision was greeted by a chorus of boos from the assembled shareholders.